The aftereffect of this blazon of tax can be illustrated on a accepted accumulation and appeal diagram. Without a tax, the calm amount will be at Pe and the calm abundance will be at Qe.
After a tax is imposed, the amount consumers pay will about-face to Pc and the amount producers accept will about-face to Pp. The consumers' amount will be according to the producers' amount additional the amount of the tax. Since consumers will shop for beneath at the college customer amount (Pc) and producers will advertise beneath at a lower ambassador amount (Pp), the abundance awash will abatement from Qe to Qt.
After a tax is imposed, the amount consumers pay will about-face to Pc and the amount producers accept will about-face to Pp. The consumers' amount will be according to the producers' amount additional the amount of the tax. Since consumers will shop for beneath at the college customer amount (Pc) and producers will advertise beneath at a lower ambassador amount (Pp), the abundance awash will abatement from Qe to Qt.
No comments:
Post a Comment