What is the price consumers will pay

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Reference no: EM132473154

Suppose the market for grass seed can be expressed as:

Demand: QD = 100 - 2p

Supply: QS = 3p

If government imposes a $5 specific tax to be collected from sellers, what is the price consumers will pay? How much tax revenue is collected? What fraction is paid by sellers?

Reference no: EM132473154

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