1. Tax equivalence theorem Use the computer algorithm discussed in footnote 24 to show that a uniform ad valorem tax of both goods yields the same equilibrium as does a uniform tax on both inputs that...

1. Tax equivalence theorem Use the computer algorithm discussed in footnote 24 to show that a uniform ad valorem tax of both goods yields the same equilibrium as does a uniform tax on both inputs that collects the same revenue.
Note:
This tax equivalence theorem from the theory of public finance shows that taxation may be done on either the output or input sides of the economy with identical results.