What is the quantity traded in the market once the tax

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The candy market is characterized by the following supply and demand functions (with P designing price and Q quantity). Both demand and supply functions are linear. The demand is expressed as: Qd = 70 - 4*P and the supply as: Qs =10 + 4*P. Candies are bad for children's teeth and the government decides to impose of unit tax of 2€ in order to limit the consumption. What is the quantity traded in the market once the tax is imposed?

Reference no: EM132517988

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