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Question: Use the appendices from Chapter 19 and 20 to answer the following. Show all of your work.  a. If ...

Show transcribed image text Use the appendices from Chapter 19 and 20 to answer the following. Show all of your work. a. If a per unit tax is collected from sellers, show that the change in price from a tax is given by dp = epsilon_s/(epsilon_s – epsilon_d) t. b. Using what you calculated from part a, show that the deadweight loss from a tax is given by DWL = – 1/2 epsilon_s epsilon_d/(epsilon_s – epsilon_d) t^2 Q/P.

Use the appendices from Chapter 19 and 20 to answer the following. Show all of your work. a. If a per unit tax is collected from sellers, show that the change in price from a tax is given by dp = epsilon_s/(epsilon_s – epsilon_d) t. b. Using what you calculated from part a, show that the deadweight loss from a tax is given by DWL = – 1/2 epsilon_s epsilon_d/(epsilon_s – epsilon_d) t^2 Q/P.