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Answer question #4 on Chapter
4, page 100 of the text: "You are chairperson of a state
tax commission responsible for establishing a program to raise new
revenue through excise taxes. Why would elasticity of demand be important to
you in determining the products on which the taxes should be
levied?". In one to three pages, fully explain your answer in a way that
shows your understanding of “elasticity of demand.”
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