Microeconomics
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Effects of Sales Tax on Factor Prices and Elasticity of Demand and ...

Effects of Sales Tax on Factor Prices and Elasticity of Demand and ... | Microeconomics | Scoop.it
Taxes reduce both demand and supply, and drive market equilibrium to a price that is higher than without the tax and a quantity that is lower than without the tax. If buyers have many alternatives to a good with a new tax, they will tend to ...
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