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Taxes on commodities create excess burden because a. they distort relative prices, and create costs above the amount of tax revenue raised. b. they raise
Taxes on commodities create excess burden because
a. | they distort relative prices, and create costs above the amount of tax revenue raised. | |
b. | they raise tax revenue equal to equivalent variation. | |
c. | they raise tax revenue greater than the amount that could be collected as a lump sum tax. | |
d. | create costs equal to the amount of tax revenue raised. |
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