The taxing agency in your state would like to impose a sales tax in a way that minimizes deadweight loss.To achieve this goal it should tax

Name: The taxing agency in your state would like to impose a sales tax in a way that minimizes deadweight loss.To achieve this goal it should tax
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Taxing necessities minimizes deadweight loss because the demand for necessities is inelastic, meaning consumers will continue to buy them even with a tax, resulting in less distortion to the market.

The Taxing Agency in Your State Would Like to Impose