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We know that the tax-rebate scheme gives back too little income to return the consumer to the initial level of utility (1250 units). With a
We know that the tax-rebate scheme gives back too little income to return the consumer to the initial level of utility (1250 units). With a $1/unit tax, find that level of rebate where the consumer is made whole in the sense that U = 1250. Describe your procedure in answering this question.
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