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Consider a consumer with strictly monotonic, strictly convex, and continuous preferences over two commodities: telephone calls and other goods. Suppose that currently the consumer has

Consider a consumer with strictly monotonic, strictly convex, and continuous preferences over two commodities: telephone calls and other goods. Suppose that currently the consumer has to pay an excise tax t on each telephone call. Let his current consumption bundle be (x1, x2) so that his total tax equals tx1(good 1 is telephone calls and good 2 is other goods). Show that if the tax were removed and he had to pay a one-time fee equal to T = tx1 instead (the same amount but as a lump sum), then he would be better off.

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