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Suppose that a market is decribed by the following supply and demand equation:
Qs = 2P
Qd = 300 -P
a. Solve for the equilibrium price and the equilibrium quanity.
b. Suppose that a tax of T is placed on buyers, so the new demand equatioin is Qd = 300 - (P +T)
Solve for the new equilibrium. What happens to the price received by the sellers, the price paid by uyers, and the quanity sold.
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