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Business, 12.02.2021 09:40 elias1019

Suppose the City of Provo is considering adding a special sales tax on either yogurt or ice cream. Supply is essentially equivalent in both markets, but Demand for ice cream is less elastic. Assume that, prior to the tax, market price and quantity are equivalent in the two markets. If the same per-unit tax is imposed on both markets, more revenue would be raised by the tax on and more deadweight loss would occur in the market for .

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Suppose the City of Provo is considering adding a special sales tax on either yogurt or ice cream. S...
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