Suppose an economist develops an economic model to analyze how a tax on soda affects the consumption

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Suppose an economist develops an economic model to analyze how a tax on soda affects the consumption of soda. The economist is confident that the model is logically consistent with the principles of economics. Unfortunately, when the economist analyzes data on the change in soda consumption after a state enacts a soda tax, she finds that the data are inconsistent with the conclusions of the model. What should the economist do next?

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Macroeconomics

ISBN: 9780138102494

9th Edition

Authors: Glenn Hubbard, Anthony Patrick O Brien

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