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    Exam 19: Distortionary Taxes and Subsidies
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    Suppose Demand Has Price Elasticity of 1 Everywhere and the Industry
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Suppose Demand Has Price Elasticity of 1 Everywhere and the Industry

Question 5

Question 5

True/False

Suppose demand has price elasticity of 1 everywhere and the industry is perfectly competitive with identical firms.In the long run, tax revenue increases as tax rates increase.

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