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It’s hard for me to understand how an increase in price - in this case through taxation - wouldn’t adversely affect demand. I’m talking in general. If this we
by skh 8y ago
It’s hard for me to understand how an increase in price - in this case through taxation - wouldn’t adversely affect demand. I’m talking in general. If this were the case then sellers would have infinite pricing power and they clearly don’t have that. Whether the price increase comes as a result of taxation or from the seller increasing prices makes no difference to the buyer. Not even monopolies and cartels have infinite pricing power.