6.8 Use calculus to show that an increase in a specific sales tax reduces quantity less...
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6.8 Use calculus to show that an increase in a specific sales tax reduces quantity less and tax revenue more, the less elastic the demand curve. (Hint: The quantity demanded depends on its price, which in turn depends on the specific tax, Q(p()), and tax revenue is R = p()Q(p()).) M 79 7. Quantity Supplied need not equal Quantity Demanded
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