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a. How to derive the input demand functions and contingent input demand functions and what are the main differences between them? b. If the government

a. How to derive the input demand functions and contingent input demand functions and what are the main differences between them?

b. If the government first charge of a tax of 1 yuan per liter of gasoline, then make a tax rebate (exact same amount as paid tax) under form of income subsidy, how will this policy affect consumer's choice and will she be better-off or worse-off?

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