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The government want to raise $50 a month from Mr. Blow. A $1 sales tax per package of cigarettes will raise the required revenue, as
- The government want to raise $50 a month from Mr. Blow. A $1 sales tax per package of cigarettes will raise the required revenue, as will a lump sum tax of $50 per month. Which tax would Mr. Blow prefer? Will he smoke more cigarettes under the sales tax or under the lump-sum tax?
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