Economics · Public Finance
Which of the following is correct regarding the Ramsey tax rule?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Heavy taxes on inputs and outputs with elastic supply.
- 2Heavy taxes on inputs and outputs with inelastic supply.✓
- 3Heavy taxes on inputs with inelastic supply.
- 4Heavy taxes on cigarettes.
Correct answer
Heavy taxes on inputs and outputs with inelastic supply.
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