4.7 Cynthia buys gasoline and other goods. The government considers imposing a lump-sum tax, + dollars per

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4.7 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. m 5. Revealed Preferences

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Microeconomics With Calculus

ISBN: 9780273789987

3rd Global Edition

Authors: Jeffrey M. Perloff

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