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Unformatted text preview: Q2 Q1 D Cost to the Govt=B+C+D S2 Incidence of a tax Ps A B C Deadweight loss D1 S1 Q P P P b Q0 Q1 D C tax Linear demand curve d b dt c a t d b bt c a P d b bt c a P dP c t t P P dP c bP a D S S S D S D + += + += += + = + + = + =* * S and price supply m equilibriu for Solving ) b(Pa (1) into (2) ng Substituti tax t, a For Pass through fraction D S D D S S E E E E E E== seller for fraction through Pass buyer for fraction through Pass Effect of a subsidy P b D1 S1 Q P P Ps Q0 Q1 subsidy Impact of Import quota=0 P A B C Deadweight loss D1 S1 Q P P 1 Import Q3 Q2 Q1...
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 Spring '12
 AbhinavDhar
 Trigraph, D1, PMA

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