Cynthia buys gasoline and other goods. The government considers imposing a lump-sum tax, + dollars per person,
Question:
Cynthia buys gasoline and other goods. The government considers imposing a lump-sum tax, + dollars per person, or a specific tax on gasoline of ( dollars per gallon. If + and ( are such that either tax will raise the same amount of tax revenue from Cynthia, which tax does she prefer and why? Show your answer using a graph or calculus.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Microeconomics Theory and Applications with Calculus
ISBN: 978-0133019933
3rd edition
Authors: Jeffrey M. Perloff
Question Posted: