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Consider a Situation Where a Government Is Deciding Between Two

Question 47

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Consider a situation where a government is deciding between two different taxes on beer.The first tax is $2.88 per case and the second is a tax of one cent per ounce placed on beer.Both are paid by the supplier.Assume both will raise the same amount of revenue this period.Pretend you are an advisor to the government and explain to them which tax they should enact.

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After carefully considering the two taxe...

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