Question: Problem 3: Boulder Is considering taxing alcoholic drinks to decrease consumption because of the concern driving Boulder estimates the supply and demand curves for a

because of the concern driving Boulder estimates the supply and demand curves

Problem 3: Boulder Is considering taxing alcoholic drinks to decrease consumption because of the concern driving Boulder estimates the supply and demand curves for a typical bar as: Demand: Q - 125 - 2.5P Supply: Q - 207. where Q - dally sales of alcoholic drinks, and P - average price per drink. Additionally, there Is a negative external cost associated with each drink - 0.10. The country has hired you to provide the following Information regarding this market and the

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