=+governor wants to minimize the deadweight loss caused by the tax, which good should be taxed? For
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=+governor wants to minimize the deadweight loss caused by the tax, which good should be taxed? For each good, draw a diagram that illustrates the deadweight loss from taxation. g. Assume that demand for gasoline is inelastic and supply is relatively elastic. The government imposes a sales tax on gasoline. The tax revenue is used to fund
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