19.2 In the chapter, we discussed the deadweight loss from taxes on consumption goods when tastes are
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19.2 In the chapter, we discussed the deadweight loss from taxes on consumption goods when tastes are quasilinear in the taxed good, and we treated deadweight loss when tastes are not quasilinear for the case of wage taxes. In this exercise, we will consider deadweight losses from taxation on consumption goods when tastes are not quasilinear.
A. Suppose that x is a normal good for consumers.
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Related Book For
Microeconomics An Intuitive Approach With Calculus
ISBN: 9781337335652,9781337027632
2nd Edition
Authors: Thomas Nechyba
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