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Mathematical Applications for the ...

11th Edition
Ronald J. Harshbarger + 1 other
ISBN: 9781305108042

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BuyFindarrow_forward

Mathematical Applications for the ...

11th Edition
Ronald J. Harshbarger + 1 other
ISBN: 9781305108042
Textbook Problem

For problems involving taxation in a competitive market, if supply is p   =   f ( q ) and demand is  p   =   g ( q ) , is the tax  t  added to  f ( q )  or to  g ( q )

?

To determine

Which will be added in t from f(q) or to g(q) for solve a problem involving taxation in a competitive market when the demand is p=g(q) and supply is p=f(q).

Explanation

Given Information:

The supply is p=f(q) and demand is p=g(q).

Explanation:

As given, supply is p=f(q) and demand is p=g(q).

Suppose the government imposes a tax of t dollars on each unit produced and sold by the producers. If in pure competition in which consumers’ demand depends only on price, the demand function will not change.

The tax will change the supply function

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Chapter 11 Solutions

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