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categoryاقتصاد عام schoolبكالوريوس event_available2026-07-16

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4. A monopolist is facing a downward sloping linear demand curve given by pa Q. The monopolist's unit production cost is given by c> 0. Now, Suppose that the government imposes a specific tax of t dollars per unit on each unit of output sold to consumers. (a) Show that this tax imposition would raise the price paid by the consumers by less than t. (b) Would your answer change if the market demand curve has a constant elasticity and is given by p=Q-1/2?

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