Suppose there are 50 sellers in a market, and they each have one unit of a good to sell. There are 50 buyers in this market and the market clears with all of the good traded. Now, government imposes a sales tax on the good. The government levies a $3 tax on the buyers of the good. What is the maximum possible amount of revenue that the government may collect from the tax? Under what conditions will this occur?

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The Answer of Suppose there are 50 sellers in a market, and they each have one unit of a good to sell. There are 50 buyers in this market and the market clears with all of the good traded. Now, government imposes a sales tax on the good. The government levies a $3 tax on the buyers of the good. What is the maximum possible amount of revenue that the government may collect from the tax? Under what conditions will this occur?

Suppose There Are 50 Sellers in a Market, and They