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2. The following are the market Demand and Supply functions for salmon steak.             QD =...

2. The following are the market Demand and Supply functions for salmon steak.

            QD = 8000-1000 P

            QS = 2000P – 4000

            Suppose the local government imposes a sales tax of $0.75 per pound. Find:

            a. The original equilibrium price and quantity.

            b. The after-tax price and quantity.

            c. The absolute and percentage shares for consumers and producers of the tax burden.

            d. Show on a graph the tax burden and its division between consumers and producers.

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