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suppose the short run market demand and supply curves for imported rice in Solomon islands are as follows. the price are in dollars per Kg and the quantities are kilograms per day P= 16 - 0.5Qd P = 2+ 0.2Qs
a. Find the equilibrium price & quantity?
b. Plot the demand & supply curve and calculate the producer and consumer surplus (label diagram)?
c. Calculate the price elasticity of demand & supply?
d. If tax of $2 per Kg is imposed on the producers , state the new demand curve equation and the new equilibrium?
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