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Suppose M=20: p1=p2. Further assume that the consumer and symetric Cobb-Douglas preferences (weights are 12 each). Which is better from the point of view of
Suppose M=20: p1=p2. Further assume that the consumer and symetric Cobb-Douglas preferences (weights are 12 each). Which is better from the point of view of the consumer, a per unit tax on good 1 or a revenue neutral tax on income (it raises the same revenue as the income does). Explain
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