Derive reduced form equations for the equilibrium values

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Reference no: EM131481812

Question: A proportional sales tax v is imposed in a competitive market where

p_d = 800 - 4q and p_s = 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%.

Reference no: EM131481812

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