Question
If the U.S. wants to maximize tax revenues, should we impose an excise tax on McDonalds or gasoline? Why? Make sure to include an elasticity
If the U.S. wants to maximize tax revenues, should we impose an excise tax on McDonalds or gasoline? Why? Make sure to include an elasticity graph for both firms and the equation for elasticity and your assumptions regarding the elasticity of demand for both products. What is the equation for elasticity of Demand? (20 points)
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Principles of Microeconomics
Authors: N. Gregory Mankiw
8th edition
1305971493, 978-1305971493
