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Imposing a per unit tax food products

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Reference no: EM131976358

Suppose that the government is considering imposing a per unit tax food products that have high sugar content.the tax is to be collected from consumers. The objective is to reduce the consumption of sugar to improve health outcomes. You have been hired by the government to evaluate the proposed tax. use a supply and demand model to demonstrate whether the following statement is true or false and provide an explanation.

"The total decrease in the consumption of sugar caused by the per-unit ta collected from consumer is larger the more elastic is demand."

Reference no: EM131976358

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