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How do markets allocate resources how do taxes affect

ECON-201 Assignment

1. How do markets allocate resources?

2. How do taxes affect market outcomes? How do the effects depend on whether the tax is imposed on buyers or sellers? Explain the answer with the help of graphs.

3. Discuss the factors that leads to shift in demand curve and supply curve with help of one example. Show how shift in demand and supply curve take place.

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