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Referencing Styles : Harvard
Adam Smith proposed taxing ‘sugar, rum and tobacco’ because they are:I.    ‘nowhere necessaries of life’II.    ‘objects of almost universal consumption’1)    In consumer theory in Economics, what is the difference between a necessity and a luxury good? [4 marks] What is the likely difference in the tax revenue obtained from a tax imposed on a necessity versus a luxury good? Illustrate with the use of appropriate fig ...

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