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c- Which of these two policies are more effective in reducing inefficiencies of free markets for polluting industries: a tax on producers of fossil fuels
c- Which of these two policies are more effective in reducing inefficiencies of free markets for polluting industries: a tax on producers of fossil fuels or a tax on consumers of fossil fuels? Assume the size of the tax is equal in both cases. Use supply and demand diagrams and explain. Notes: Your graph and explanation should complement each other, and your graphical analyses should include all relevant welfare analyses. [15p]
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