# PROBLEM #6 The equilibrium price of cars in Boston in an unregulated automobile market is \$25,000... PROBLEM #6 The equilibrium price of cars in Boston in an unregulated automobile market is \$25,000 per car, and the equilibrium quantity is 20,000 cars per year. Assume that the elasticities of supply and demand are equal. a) Using our supply-and-demand framework, graph the market in its initial equilibrium. Graphpaper is readily available at http://www.printfreegraphpaper.com/. b) The government imposes a \$6,000 tax on suppliers. Draw the post-tax supply curve, and calculate how much of the tax is borne by producers and consumers. (Hint: remember that the elasticities of supply and demand are equal). ##### Add Answer of: PROBLEM #6 The equilibrium price of cars in Boston in an unregulated automobile market is \$25,000...
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• ### Problem #1

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