The lump sum principle suggests that the tax that reduces utility the least is
A)a tax on income
B)a tax on a good with many substitutes
C)an equal tax per-unit on all goods
D)a tax on a good with only a few substitutes

Question

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The Answer of The lump sum principle suggests that the tax that reduces utility the least is
A)a tax on income
B)a tax on a good with many substitutes
C)an equal tax per-unit on all goods
D)a tax on a good with only a few substitutes

The Lump Sum Principle Suggests That the Tax That Reduces