Business, 02.11.2020 16:30 dominiqueallen23
suppose the market for dry cleaning has an inverse demand of P = 10 â€" 0.15Q and an inverse supply curve (MC) of P = 0.05Q, where P is the price per article of clothing and Q is the quantity of clothing laundered. Suppose the external marginal cost of dry cleaning is $1. If the government tries to correct the negative externality by placing a $1 tax on each laundered piece of clothing, buyers will pay and sellers will receive , net of the tax.
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