Suppose demand and supply are given by QXd = 14 − (1/2)PX and QXs = (1/4)PX − 1 a. Determine the equilibrium price and quantity. Show the equilibrium graphically. Equilibrium price: $  Equilibrium quantity:  b. Suppose a $12 excise tax is imposed on the good. Determine the new equilibrium price and quantity. Equilibrium price: $  Equilibrium quantity:  c. How much tax revenue does the government earn with the $12 tax?

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