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Consider the following information: Suppose a tax is levied at $1 per unit. Now suppose the tax increases by 20% to $1.20 per unit and
Consider the following information: Suppose a tax is levied at $1 per unit. Now suppose the tax increases by 20% to $1.20 per unit and the equilibrium size of the market (tax base) shrinks by 4% in response to the tax increase. Based on the above information, what is the increase in tax revenue
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