A product has demand given by Q = 30 – 2P, where P here means buyer price of course. Supply is given by Q = P, where P is seller price here. First, with no tax in this market, find equilibrium price and quantity. Next, suppose that an excise tax of $3 is imposed on the sellers for each unitthey sell. In this case, determine the equilibrium buyer and seller prices and market quantity. How is the tax shared between buyers and sellers?

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