Question: 1. *6.8 Use calculus to show that the less elastic the demand curve, an increase in a specific sales tax t reduces quantity less and

1. *6.8 Use calculus to show that the less elastic the demand curve, an increase in a specific sales tax t reduces quantity less and tax revenue more. (Hint: The quan tity demanded depends on its price, which in turn depends on the specific tax, Q(p(t)), and tax revenue is R = p(t)Q(p(t)).) M

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