Consider a seller who values a car at $9,500 and a buyer who values the same car

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Consider a seller who values a car at $9,500 and a buyer who values the same car at $10,000. What total surplus will result from a transaction between the two when the seller is faced with the following sales tax rates: 0%, 2%, 4%, 6%, and 8%?

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Managerial Economics A Problem-Solving Approach

ISBN: b00btm8fk0

2nd Edition

Authors: Luke M. Froeb, Brain T. Mccann

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Question Posted: Jan 21, 2012 07:01 AM

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Consider a seller who values a car at $9,500 and a buyer who values the same car

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Tax Rate Seller Value Seller Min Pr...View the full answer

Managerial Economics A Problem-Solving Approach

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