Imposing taxes on the sellers of certain classes of products

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The government is considering imposing taxes on the sellers of certain classes of products. The first tax they are considering is a tax on 2% milk. The second is a tax on all dairy products. The third is a tax on all food products.

Which of these three taxes would you expect to have the largest impact on the sticker prices of the taxed products?

Reference no: EM131199141

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