Consider an economy in which an individual (A) is consuming two goods (X and Y). The...

Consider an economy in which an individual (A) is consuming two goods (X and Y). The
government is considering two alternative taxation policies: (a) taxing good X; (b) putting a lump-
sum tax on A. By using a graphical analysis, compare these two taxation policies in terms of
“excess burden”.

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Rahul Sunny answered 2 months ago

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