What is the incidence of this tax on consumers and producers

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Reference no: EM13802510

The following equations represent the inverse supply and demand functions in the market for Good A:

PC= 80-½ QDP= 14 + QS where PC and PP are the prices paid by consumers and received by producers respectively. QD and QS are the quantities demanded and supplied, respectively. Suppose the government imposes a tax of $6 per unit of Good A. What is the incidence of this tax on consumers and producers?

Reference no: EM13802510

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