Lump-sum tax over an excise tax


Consider the result suggesting that a consumer prefers to be subject to a lump-sum tax over an excise tax when they end up raising the same tax revenue. Explain how and why the result is related to the consumers' substitution effect.

Request for Solution File

Ask an Expert for Answer!!
Microeconomics: Lump-sum tax over an excise tax
Reference No:- TGS064194

Expected delivery within 24 Hours