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Suppose that there are two commodities, R and S. When a tax on R alone is imposed, the excess burden is XR. When a tax on S alone is imposed the excess burden is XS. When the two taxes are imposed one

Suppose that there are two commodities, R and S. When a tax on R alone is imposed, the excess burden is XR. When a tax on S alone is imposed the excess burden is XS. When the two taxes are imposed one after the other, the overall excess burden is less than XR+XS. Explain.

Apr 17 2021 View more View Less

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