Explain why a tax is imposed on the consumption


Problem

Consider an economy which produces two goods, can and shirts. Explain why if a tax is imposed on the consumption of can but not on shirts, the economy will not exhibit product mix efficiency.

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Microeconomics: Explain why a tax is imposed on the consumption
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