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Refer to the figure below. Suppose that the supply curve is constant at $10. Suppose further that the before-tax demand curve DB can be written as B = 20 - P/2, where B is the number of structures per year and P is the price.
(A)Find B0.
(B)Suppose that the after-tax demand curve, , can be written as B = 20 - P. Find B1 and
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