Question 1Lump sum taxessale to model theorettoday to applyb. have a small excess burdenc. have no welfare costd. require perfectly elastic demand curves

A lump sum tax is the fixed tax amount imposed on the consumer. It is not related to the quantity of…

Answered: Lump sum taxes it to model…

Lump sum taxes it to model theoretically but foalet a b. have a small excess burden c. have no welfare cost d. require perfectly elastic demand curves

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter5: Elasticity

Section: Chapter Questions

Problem 13RQ: Describe the general appearance of a demand or a supply tune with zero elasticity.

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