Price and quantity with perfectly competitive markets

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Reference no: EM131099430

Assume that the Demand curve is given as Q=100-4P and the supply curve as P=10+4Q.

a. What would be the price and quantity with perfectly competitive markets?

b. What will happen to price and quantity if the government imposes a specific tax of $1 per unit on the producers?

What would be DWL? What would be tax incidence on producers and consumers?

Reference no: EM131099430

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