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in the USA sales of both new and old cars are subject to sales tax. Sales tax is paid by the buyer and collected by
in the USA sales of both new and old cars are subject to sales tax. Sales tax is paid by the buyer and collected by the seller, who adds the sales tax on top of the purchase price.
Imagine that, in order to counter rising car prices, the US government introduces a special scheme that exempts both new and old cars from sales tax. How might this factor affect the overall price for buyers in the new car market? And the used car market?
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