For each of the following statements, do you agree or disagree? Why? a. Taxing for externalities causes

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For each of the following statements, do you agree or disagree? Why? 

a. Taxing for externalities causes distortions that always result in excess burdens.

b. It is possible for a distorting tax to improve economic welfare. 

c. An optimal system of excise taxes would impose the heaviest taxes on those goods with relatively elastic demands.  

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