Question: Find two articles that discuss the local, state, or federal taxation of a good. Describe the effects of taxation and price controls on the economy.
- Is the tax levied on the producers or consumers?
- How does the tax affect supply or demand?
- How does the tax affect the equilibrium price and quantity?
- In this market, describe a hypothetical situation where a price ceiling or floor could be imposed. What implications would this have for the market?