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Question: The demand and supply functions for hockey sticks are given by
Qd = 286 - 20p
Qd = 88 - 40p
In order to raise revenue to finance minor hockey so that Canada can continue its gold metal streak at the Olympics, the government decides to add a 2$ tax per hockey stick sold to be paid by the buyers. Determine the equilibrium price and quantity both before and after the tax. How is that burden of the tax shared between buyers and sharers.
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