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Business, 26.12.2019 06:31 Arealbot

You are an assistant to a senator who chairs an ad hoc committee on reforming taxes on telecommunication services. based on your research, at& t has spent over $15 million on related paperwork and compliance costs. moreover, depending on the locale, telecom taxes can amount to as much as 25 percent of a consumer’s phone bill. these high tax rates on telecom services have become quite controversial, due to the fact that the deregulation of the telecom industry has led to a highly competitive market. your best estimates indicate that, based on current tax rates, the monthly market demand for telecommunication services is given by qd = 300 - 4p and the market supply (including taxes) is qs = 3p - 120 (both in millions), where p is the monthly price of the telecommunication services. the senator is considering tax reform that would dramatically cut tax rates, leading to a supply function under the new tax policy of qs = 3.2p - 120. how much money per unit would a typical consumer save each month as a result of the proposed legislation?

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