What is the new supply function in each tax regime

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Assume the demand and supply equations are the same as those givenin Question 11. Now assume the government introduces either aspecific excise tax of T=2 (i.e. $2) per unit, or an ad-valorem taxrate of t=0.2 (i.e. 20%). What is the new supply function in each tax regime and which tax gives the highest revenue to the government?

Reference no: EM13244494

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