Answer
The taxes cause deadweight losses.
Work Step by Step
Taxes distort the decisions that consumers make, and also result in an administrative burden.
Principles of Microeconomics, 7th Edition
by Mankiw, N. Gregory
Published by
South-Western College
ISBN 10:
128516590X
ISBN 13:
978-1-28516-590-5
Chapter 12 - Part IV - The Design of the Tax System - Questions for Review - Page 253: 3
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