The state of illinois levies the tax

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Under which situation is a resident of Chicago more likely to bear the economic incidence of a unit tax on tobacco: (#1) the city of Chicago levies the tax, (#2) the state of Illinois levies the tax? Defend your answer using the appropriate diagrams to supplement your discussion. Is the city tax or the state tax more efficient in terms of minimizing efficiency loss? Explain.

Reference no: EM131392164

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