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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Dissertation: A proportional sales tax v is imposed in a competitive
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