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Written by:

Kum D


Date added:

March 3, 2017








No of pages / words:

3 / 664


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Instead it shifts the demand of sandwiches to the buyer because they have to pay the tax for purchasing it and the cost of purchasing it to the seller. This taxation causes a transfer in the demand curve for sandwiches, thus creating fewer purchases of sandwiches. Furthermore the tax impact then passes to the sellers, who by decreasing the cost for a sandwich in order keep their revenue elevating impacts the equilibrium price and quantity...
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Once fewer purchases are made the impact of the tax is shown in the equilibrium price and equilibrium quantity. The seller is forced to lower their cost for purchase to buyers. This greatly impacts them as a producer for the product. The tax may not be directly applied to them, but impacts them regardless...
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