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September 18th, 2016, 09:21 AM   #1
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Adv Microeconomics -NEED help

Can someone explain how this slide in our handout
" Equilibrium, rewritten :

Licorice market: (D+B)* p(l)-S*p(x)=(A+D*c)
Chocolate market: (D+B)*p(x)-S*p(l)=(A+D*c)+D*t

Effect of change in tax on chocolate:

Licorice market: (D+B)* dp(l)-S*dp(x)=0
Chocolate market: (D+B) * dp(x)-S*dp(l)=D*d(t) "

What did he take the derivative of when the effect of change in tax is done ?
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September 27th, 2016, 02:43 PM   #2
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It would help if you defined all the variables.
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