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Essay

The Effects Of Taxation And Price Controls On The Economy

Essay specific features

 

Issue:

Business

 

Written by:

Carmela M

 

Date added:

December 30, 2014

 

Level:

University

 

Grade:

A

 

No of pages / words:

3 / 802

 

Was viewed:

7764 times

 

Rating of current essay:

 
Essay content:

On the other hand when price controls are imposed there is an artificial decline in the prices. At the lower prices, a higher quantity is demanded but the production is insufficient to fulfill that demand and so a shortage remain. There are stock outs. So in case of imposition of taxes as has been done in case of cigarettes, there is excess production capacity and the factors of production have to be diverted to other industries or sectors...
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There are stock outs. So in case of imposition of taxes as has been done in case of cigarettes, there is excess production capacity and the factors of production have to be diverted to other industries or sectors. Alternately, the production can be exported. The intended effect is that the incidence of smoking gets reduced...
displayed 300 characters

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