Is demand elastic or inelastic in this price range

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Consider the demand curve P = 100-2Q. The supply curve is given by P = 30.

(a) Draw the supply and demand curves to scale and compute the equilibrium price and quantity in this market.

(b) If the government imposes a tax of $10 per unit, draw the new equilibrium and compute the new quantity traded and the amount of tax revenue generated.

(c) Is demand elastic or inelastic in this price range?

Reference no: EM131072979

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