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Demand for rental one-bedroom apartments in Aberdeen is given by Q = 500 - P where P is the priceof monthly rent in , and

Demand for rental one-bedroom apartments in Aberdeen is given by Q = 500 - P where P is the priceof monthly rent in , and Q is the number of apartments. They supply function isQ = 3P - 300. Assume this market is perfectly competitive.

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(g) Which side of the market would bear more tax burden? Explain that using the relationship between the tax burden and elasticity. (h) What is the value of the deadweight loss due to imposition of tax

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