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1. Explain the derivation of the Laffer curve. In particular, when the Laffer curve is upward sloping. what is the relative magnitude of the income

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1. Explain the derivation of the Laffer curve. In particular, when the Laffer curve is upward sloping. what is the relative magnitude of the income and substitution effects? When it is downward sloping? If the IE dominates the SE, is the Laffer curve always upward sloping? If the SE dominates the IE, is the Laffer curve always downward sloping? Explain

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