The current equilibrium price in a competitive market is $100. The price elasticity of demand is 4

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The current equilibrium price in a competitive market is $100. The price elasticity of demand is −4 and the price elasticity of supply is +2. If an excise tax of $3 per unit is imposed, how much would you expect the equilibrium price paid by consumers to change? How much would you expect the equilibrium price received by producers to change?
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Microeconomics

ISBN: 978-0073375854

2nd edition

Authors: Douglas Bernheim, Michael Whinston

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