Question
Greg spends all of his income on sandwiches and shoes. Suppose that the government introduces an ad valorem tax of 60% imposed on both sandwiches
Greg spends all of his income on sandwiches and shoes. Suppose that the government introduces an ad valorem tax of 60% imposed on both sandwiches and shoes. What income tax rate is equivalent to this commodity tax?
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An ad valorem tax is a tax that is imposed as a percentage of the value of a good In this case the g...
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Microeconomics An Intuitive Approach with Calculus
Authors: Thomas Nechyba
1st edition
538453257, 978-0538453257
