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  3. Study Set
    Principles of Microeconomics
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    Exam 8: Application: the Costs of Taxation
  5. Question
    Consider a (Per Unit) Tax on Two Different Goods,X and Y.Good
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Consider a (Per Unit) Tax on Two Different Goods,X and Y.Good

Question 213

Question 213

Essay

Consider a (per unit) tax on two different goods,X and Y.Good X has very elastic supply,while good Y has very inelastic supply.Assume the demand curve for each good is the same.If the government wants to minimize deadweight loss,which good should they tax

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