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You work as a commissioner on the planning board of the local public transport authority. Recently the government implemented a large tax rebate in an

You work as a commissioner on the planning board of the local public transport

authority. Recently the government implemented a large tax rebate in an attempt to

stimulate the economy. However after the tax rebate you notice that commuter spending

on public transport has paradoxically decreased. Explain this behavior. This si about utility Maximization. Thank you.

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