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Set up the relationship between DWL and government revenue (DWL / tax revenue). Explain, in particular how this depends on a. Why? I have calculated
Set up the relationship between DWL and government revenue (DWL / tax revenue). Explain, in particular how this depends on a. Why?
I have calculated DWL and provenue:
DWL =2at2
Provenuee =tA2aptat2
The original demand function isD(p)=Aap,whereA,a>0
And the company sets a price:0<p1<aA
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