A proportional sales tax v is imposed in a competitive
Question: A proportional sales tax v is imposed in a competitive market where
pd = 800 - 4q and ps = 50 + 5q
Derive reduced form equations for the equilibrium values of p and q in terms of the tax rate v and use them to predict p and when v is 15%.
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question a proportional sales tax v is imposed in a competitive market wherepd 800 - 4qnbsp andnbsp ps 50 5qderive
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