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Suppose the government imposes a tax on potato chips. Will the deadweight loss from the tax be larger in the short or the long run?
Suppose the government imposes a tax on potato chips. Will the deadweight loss from the tax be larger in the short or the long run? explain in details in which your clearly articulate your thinking. You can, and should, refer to some of our mathematical results with respect to deadweight loss from taxes and what you know about elasticities.
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