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Solve for the reduced form equations

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1. An excise tax of $t per unit is imposed by the government on each spoon sold. This will cause the price paid by demanders (Pd) to exceed the price received by suppliers (Ps) by the amount of the tax - i.e., Pd = Ps + t. (It doesn't matter whether the tax is legally imposed on buyers or sellers.) Solve for the reduced form equations. 

Reference no: EM13993642

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