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    Principles of Economics
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    Exam 8: Application: the Costs of Taxation
  5. Question
    Which Economic Tool That Can Predict Whether Reducing a Tax
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Which Economic Tool That Can Predict Whether Reducing a Tax

Question 113

Question 113

Essay

Which economic tool that can predict whether reducing a tax in a market will increase or decrease tax revenue?

Correct Answer:

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The best predictor is the elasticity of ...

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