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 he gathered from the vender. 0n the off chance that die item has a versatile interest, a more prominent part of the duty 1vvill be consumed by the dealer. This is on the grounds mat products with versatile interest cause an enormous decrease in amount requested a little expansion in cost. In this manner, to settle deals, the dealer assimilates a greater amount of the extra taxation rate. For instance, the vender could drop the cost of the item to $0.?0 so d1at, in the wake of including the duty, the purchaser pays a sum 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 of die $0.50 charge [as a post-charge cost} and the dealer has paid the leftover $0.30 {as a lower pre-charge price}.[51]