To show this relationship. assume that the market cost of an item is $1.00 and that a $0.5 forced on the item that, by regulation, is to be gathered from the merchant. On the off cha the item has a exible interest. a more prominent part of the expense will be consumed merchant. This is on the grounds that merchandise with versatile interest cause a huge de amount requested a little expansion in cost. In this manner, to settle deals, the merchant r greater amount of the extra taxation rate. For instance, the dealer could drop the cost of t $030 so that, in the wake of including the duty, the purchaser pass an aggregate of $1.20, more than he did before the $0.50 charge was forced. In this model, the purchaser has pai the $0.50 charge {as a post-charge cost} and the dealer has paid the excess $0.30 [as a lo charge price}.[50]