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3. If you visit Amsterdam you will likely note that homes facing the canals are tall, deep, and extremely narrow. This is a consequence of

3. If you visit Amsterdam you will likely note that homes facing the canals are tall, deep, and extremely narrow. This is a consequence of the desire to avoid taxes.

(a) Describe a tax system that would induce this type of behavior.

(b) Is there any deadweight loss associated with such a tax system? If so, how might one be able to "see" this?

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