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(a) Using an appropriate diagram Illustrate and explain the welfare effects of a unit tax on a commodity within the framework of indifference curves analysis
- (a) Using an appropriate diagram Illustrate and explain the welfare effects of a unit tax on a commodity within the framework of indifference curves analysis (2 marks)
- (b) Illustrate on the same diagram, the welfare effects of a lump-sum tax that generates the same amount of tax revenue as in (a). (1.5 marks)
- (c). Are the welfare effects the same? Is any of the taxes efficient? Explain why or why not. (1.5 marks)
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Essentials Of Business Law And The Legal Environment
Authors: Richard A Mann, Barry S Roberts
10th Edition
0324593562, 9780324593563
