Why is it the case that taxes in one market can have impacts on supply and demand in others and should policy makers take this into account when setting taxes?
What will be an ideal response?
When goods are complements or substitutes, changes in the price can impact demand for
other goods. Policy makers should care about the overall impacts to the economy from certain
tax policies. This will be discussed in greater detail in later chapters.
Economics
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A person who previously had a full-time job has been paroled from prison and has applied for a job is considered
A) a reentrant. B) a job loser. C) a new entrant. D) not in the labor force.
Economics
Other things being equal, if input prices rise in a country, then there would be
A) cost-push inflation. B) demand-pull inflation. C) cost-push deflation. D) more production and a lower price level.
Economics