Greg spends all of his income on sandwiches and shoes. Suppose that the government introduces an ad

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Greg spends all of his income on sandwiches and shoes. Suppose that the government introduces an ad valorem tax of 60% imposed on both sandwiches and shoes. What income tax rate is equivalent to this commodity tax?

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Microeconomics An Intuitive Approach with Calculus

ISBN: 978-0538453257

1st edition

Authors: Thomas Nechyba

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Posted Date: Mar 02, 2024 10:33 AM

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Greg spends all of his income on sandwiches and shoes. Suppose that the government introduces an ad

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An ad valorem tax is a tax that is imposed as a percentage of the value of a good In this case the g... View the full answer

Microeconomics An Intuitive Approach with Calculus

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