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Ceteris paribus, assume an increase in the demand for sports cars has resulted in a large increase in road accidents involving sports cars. This has
Ceteris paribus, assume an increase in the demand for sports cars has resulted in a large increase in road accidents involving sports cars. This has resulted in the government imposing a 50 percent tax on all sports car manufacturers.
Using demand and supply graphs illustrate and explain the impact on the equilibrium price and quantity in the market for sports cars following the simultaneous increase in demand for and the imposition of tax on sports cars?
please include explanations and any workings out
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