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Please help with this question. Thank you! 1. A consumer supplies labour and buys gin and rum. Suppose that the initial tax on rum is

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Please help with this question. Thank you!

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1. A consumer supplies labour and buys gin and rum. Suppose that the initial tax on rum is tr :1 , and a positive tax on gin is introduced. Label the change in excess burden in the two markets, and write down the formula for it. Show that the change in EB is negative if is is small

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