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In: Economics

As tax rates get higher, at some point, taxes can get so high that the (quantity/price)...

As tax rates get higher, at some point, taxes can get so high that the (quantity/price) effect dominates the(price/quantity) effect, and raising taxes further will  (increase/decrease)  increase  decrease  total revenue.

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Expert Solution

As tax rates gets higher, at some point taxes can gets so high that the quantity effect dominates the price effect, and raising taxes further will decrease total revenue.

Rahul Sunny answered 2 years ago
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