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Consider a Market in Which Demand Is Given by P

Question 10

Multiple Choice

Consider a market in which demand is given by P = 30 - 2q and supply is given by P = q.If the government imposes a tax of $6 per unit on suppliers:


A) Consumers pay a price of $16 and suppliers receive a net price (not including the tax) of $10.
B) Consumers pay a price of $12 and suppliers receive a net price (not including the tax) of $6.
C) Consumers pay a price of $14 and suppliers receive a net price (not including the tax) of $8.
D) Consumers pay a price of $20 and suppliers receive a net price (not including the tax) of $14.
E) None of the above.

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