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Q. Assume the current equilibrium price of cheese pizza is $10 also 10 million pizzas are sold every month. After the federal government imposes a $0.50 every pizza tax, the equilibrium price of pizzas rises to $10.40 also the equilibrium quantity falls to 9 million. Illustrate the situation with a demand also supply graph. Be sure your graph Elucidate how the equilibrium price before also after the tax, the equilibrium quantity before also after the tax also the areas representing consumer surplus after the tax, producer surplus after the tax, tax revenue collected by the government also deadweight loss. Elucidate how is the tax burden divided between buyers also sellers?
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