question archive the local government decides to impose a sales tax on some selected items
the local government decides to impose a sales tax on some selected items
Subject:EconomicsPrice: Bought3
the local government decides to impose a sales tax on some selected items. on item b the final prices increases almost full amount of the tax and demand does not chanctr much and the tax revenues collected are quite high. on item c the price increases very little but demand falls quite a bit and very little tax revenue is collected. is this a violation of the law of deman or something else. explain.
