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1) The table in the next column sets out the demand and supply schedules for chocolate brownies.
Price (Cents/Brownie) Quantity Demanded (Millions/Day) Quantity Supplied (Millions/Day)
50 5 3 60 4 4 70 3 5 80 2 6
a. If sellers are taxed 20 cents a brownie, what is the price and who pays the tax?
b. If buyers are taxed 20 cents a brownie, what is the price and who pays the tax?
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