Kristine consumption pattern and welfare be affected

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With the excise tax of $0.20 per six-pack, Kristine purchases three six-packs of Diet Coke per day. If the government eliminates the excises tax and, instead requires Kristine to pay $0.60 per day as a lump-sum tax (the daily tax liability is $0.60, regardless of how much Diet Coke Kristine consumes), how will Kristine's consumption pattern and welfare be affected?

Reference no: EM132460890

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