Micro - class 4 - that they dont drive/drink. Just raising...

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Sept 24 Suppose you are a government and you want to raise taxes from a consumer. If you have 2 taxes, advalorem and unit tax, if both raise the same about of tax, the consumer will be better off if you use a income tax instead of a unit tax. If you are going to tax agents don’t mess around with the relative prices, tax them on their relative income. Why there a gas on gas? Exception: They can’t to socialism because when they plan of giving back the money, most people are going to claim
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Unformatted text preview: that they dont drive/drink. Just raising the price on oil makes sure that the tax falls on the people that are using the products. Lumpsum tax: tax you pay for just being there. Example: entry fee (cover) into a bar and also pay for drinks, 2 part pricing schemes. They tend to raise more money. Example: You can forecast what the alcoholics equilibrium will be. Should I be surprised with transitivity, are there things that are not transitive?...
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