Unformatted text preview: in part because incumbent George Bush had broken his 1988 campaign promise, “Read my lips: no new taxes.” We began our study of taxes in Chapter 6. There we saw how a tax on a good affects its price and the quantity sold and how the forces of supply and demand di-vide the burden of a tax between buyers and sellers. In this chapter we extend this analysis and look at how taxes affect welfare, the economic well-being of partici-pants in a market. A P P L I C A T I O N : T H E C O S T S O F T A X A T I O N 161...
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This note was uploaded on 07/30/2010 for the course ECON 120 taught by Professor Abijian during the Spring '10 term at Mesa CC.
- Spring '10