Discussion 2.1 - would a tax affect sales, supplier...

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Discussion 2.1 What happens to the gains from trade when a tax is imposed? Gains from trade are seriously affected when a tax is imposed. No matter what the tax is far, it ends up being a loss to the buyers and sellers in a market. The seller ends up earning less then they normally would and the buyer ends up paying more than they normally would or no trade at all which causes deadweight loss because buyers and sellers do not get a chance to experience the gain of trade. Choose an industry in which you work or with which you are familiar. How
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Unformatted text preview: would a tax affect sales, supplier revenue, and consumer buying power in that industry? The government tax on the aviation has considerably affected the aviation markets ability to contribute to our economic recovery in my opinion. Either more airlines have gone bankrupt or joined forces with other companies, which mean fewer flights are being taken because consumers are just not willing to pay the price or cannot afford it....
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This note was uploaded on 04/07/2012 for the course ECONOMICS 101 taught by Professor Dr.edmondson during the Spring '11 term at Thomas Edison State.

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