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The following graph shows the daily market for wine. Suppose the government institutes a tax of $46.40 per bottle. This places a wedge between the price buyers and the price sellers receive. (
SOLVED: Q1. Suppose the market for coffee in China is characterized by demand Qd=1000-10 P. Individual coffee shops are identical with total costs TC=5 q^2 and marginal costs MC=10 q. (a) What
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