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Suppose the market for fine dining in Los Angeles is described by the following supply and demand equations:
Qs = 3P
Qd = 400 - P
Suppose a Tax of T is placed on restaurant goers, so the new demand equation is
Qd=400-(P + T)
solve for the equilibrium and state (1) the price received by restaurant owners, (2) the price paid by restaurant goers, and (3) the quantity of restaurant meals sold.
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