To show this relationship, assume that the market cost of an item is $1.00 and that a $0.50 charge is forced on the item that, by regulation, is to be gathered from the merchant In the event that the item has a versatile interest, a more noteworthy part of the assessment will be consumed by the merchant. This is on the grounds that merchandise with exible interest cause an enormous decrease in amount requested a little expansion in cost. Along these lines, to balance out deals, the dealer retains a greater amount of the extra taxation rate. For instance, the vender could drop the cost of the item to $0.70 so that, subsequent to including the assessment, the purchaser pays an aggregate of $1.20, or $0.20 more than he did before the $0.50 charge was forced. In this model, the purchaser has paid $0.20 ofthe $0.50 charge {as a postcharge cost} and the vender has paid the excess $0.30 [as a lower precharge pricel.[50]