Explain how the incentive effects of each of the following hypothetical taxes would cause people to change
Question:
Explain how the incentive effects of each of the following hypothetical taxes would cause people to change their behavior. Be sure to explain what people are likely to do less of and what they are likely to do more of in response to each tax:
(a) A $1,000,000-per-story tax on all office buildings more than two stories tall.
(b) A $2,000-per-car tax on all red (and only red) cars.
(c) A $100-per-book tax on all new college textbooks.
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Step by Step Answer:
In all three cases the taxing authority will have to worry about exactly what constitutes a story red car new college and textbook This issue is one o...View the full answer
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Related Book For 
The Economics of Public Issues
ISBN: 978-0134018973
19th edition
Authors: Roger LeRoy Miller, Daniel K. Benjamin, Douglass C. North
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