Specific tax on the purchase and use of good
Problem: Given most common goods, will a new specific tax on the purchase and use of the good increase or decrease its equilibrium quantity? Will consumers benefit or lose? Will producers of the product benefit or lose?
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Given most common goods, will a new specific tax on the purchase and use of the good increase or decrease its equilibrium quantity? Will consumers benefit or lose? Will producers of the product benefit or lose?
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