Supply and demand functions

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Use the following supply and demand functions to answer the questions below:

Qd = 20-2P, Qs = 5+3P

A. Determine the total tax revenue earned by the government, the amount of the tax paid by Consumers and the amount of the tax paid by sellers.

B. What determines whether consumers or sellers pay the greater proportion of a tax-such as the tax on cigarettes-in part a? Explain your answer.

Reference no: EM13903672

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