This preview shows page 1. Sign up to view the full content.
Unformatted text preview: 2. Buyer value seller cost is positive but less than tax Could be profitable without tax; will not happen with tax Goods in Inelastic Supply-Labor services?-Savings?-Land Goods in Inelastic Demand-Necessities-Goods with few substitutes-The argument for a broad-based sales tax Subsidies-In November, 2000, Californians voted on a school voucher initiative-$4000 for every family that sends a child to a private school-An example of a subsidy, (negative tax)-What will be effects on private school enrollment and tuition...
View Full Document
This note was uploaded on 06/03/2009 for the course ECON ECON 1 taught by Professor Crouch during the Spring '09 term at UCSB.
- Spring '09