Question A local government is considering introducing a tax on gasoline or a tax on new cars. Which good hould they tax if they want to minimize deadweight loss they create? New cars Gasoline Tax...


Question<br>A local government is considering introducing a tax on gasoline or a tax on new cars.<br>Which good hould they tax if they want to minimize deadweight loss they create?<br>New cars<br>Gasoline<br>Tax both goods because neither tax will create deadweight loss<br>OIt doesn't matter because both taxes would create the same amount of<br>deadweight loss<br>

Extracted text: Question A local government is considering introducing a tax on gasoline or a tax on new cars. Which good hould they tax if they want to minimize deadweight loss they create? New cars Gasoline Tax both goods because neither tax will create deadweight loss OIt doesn't matter because both taxes would create the same amount of deadweight loss

Jun 07, 2022
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