+1 (347) 474-1028 info@essayparlour.com

Suppose the government is thinking about imposing higher tax

Paper help Economics Suppose the government is thinking about imposing higher tax

Economics

Suppose the government is thinking about imposing higher tax

Suppose the government is thinking about imposing higher taxes on fast-food restau- rants. As a new… Show more Suppose the government is thinking about imposing higher taxes on fast-food restau- rants. As a newly minted economist/policy analyst, you have been hired to analyze the impact of this policy on low-income consumers. Suppose the supply curve for fast-food has the typical upward slope. (a) suppose low-income consumers are able to easily substitute away from fast-food when prices change. Graphically depict the amount of the fast-food tax that is paid by the low-income consumer. (b)suppose that in contrast to part a, consumers are not easily able to substitute away from fast food when prices change. Graphically depict the amount of the fast-food tax that is paid by the low-income consumer. • Show less

Order Now

Ready to try a high quality writing service? Get a discount here