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Consider a market supply and demand represented by the following: Qs = 4P – 120 and...

Consider a market supply and demand represented by the following: Qs = 4P – 120 and Qd = 1000 – 10P. Use this information to answer the following questions.

Calculate equilibrium price and quantity.

What is the consumer surplus?

If the government imposes an excise tax of $2, what would be the new equilibrium price, quantity?

What would happen to the consumer surplus?

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