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N7 An ad valorem tax of 20% applies to books which have a market price of $18 per book (i.e. the price including the tax
N7
An ad valorem tax of 20% applies to books which have a market price of $18 per book (i.e. the price including the tax is $18). What price should be used for a book in a Social CBA if the tax is distortionary and the commodity is a project input which increases the supply of the input?
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