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Comment on the following three statements (18 points, 6 each): a) At a time of six percent inflation, price controls on essential goods such as

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Comment on the following three statements (18 points, 6 each): a) "At a time of six percent inflation, price controls on essential goods such as food and gasoline would make the economy better off." b) "The deadweight loss from a tax on a good will be smallest when demand for that good is elastic" c) " Some sort of government intervention is always required when there is a negative externality."

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