Calculate the equilibrium buyers and sellers price

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Reference no: EM13851384

S(P^-)= 50 + 3P^-

D(P^+)=370-p^+

Sales tax= 20 %

Calculate the equilibrium buyers' and sellers' price with no sales tax, and then with the 20% tax.

Explain how answer illustrates the principle that less responsive side of the market will pay more than half the total cost of sales tax

Reference no: EM13851384

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