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Suppose that a town wants to raise revenue by taxing cable

Ramsey rule. Empirical work has determined that the price elasticity of demand for basic cable TV service is -0.51, and that the price elasticity of demand for satellite TV is -7.40. Suppose that a town wants to raise revenue by taxing cable TV and satellite TV service as efficiently as possible. If so, what should be the ratio of the cable tax to the satellite tax? Explain.

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Basic Computer Science: Suppose that a town wants to raise revenue by taxing cable

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