For the average consumer,the combination of an excise tax and a tax rebate:

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The excise tax increases the price of the taxed good, which leads to a decrease in consumption. However, the tax rebate partially offsets the increase in price, reducing the impact of the tax, leading to a smaller decrease in consumption. Overall, the combination of the excise tax and tax rebate results in a decrease in consumption of the taxed good, but the exact impact on welfare depends on the specific details of the tax and rebate design.

For the Average Consumer,the Combination of an Excise Tax and a Tax