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Suppose the government is considering implemting a new excise tax (per-unit tax) as a way to generate more tax revenue. If the goal is to
Suppose the government is considering implemting a new excise tax (per-unit tax) as a way to generate more tax revenue. If the goal is to maximize tax revenue and minimize the DWL, the government should:
a. Impose the tax on a good that has a very inelastic demand (i.e., a steep demand curve)
b. Impse the tax on buyers
c. Impose the tax on sellers
d. Impose the tax on a good that has a very elastic demand (i.e., a flat demand curv
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