Determine how much money goes to the government

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Assume the supply curve for DVDs is P=2Q and demand is P=42-Q. Suppose state government levies a tax of $9 on each DVD sold, collected from the seller. What quantity of DVDs will be sold in equilibrium and what price do buyers pay? How much do the buyers now spend in total and how much money goes to the government?

Reference no: EM13236124

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