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> In all scenarios, taxes decrease consumption. Not always. For example, an increase in the tax on a popular but very low-priced subsistence food can increas
by lucas_membrane 3y ago
> In all scenarios, taxes decrease consumption.
Not always. For example, an increase in the tax on a popular but very low-priced subsistence food can increase its consumption by reducing the amount of higher-priced alternatives that consumers can afford.
- euroderf 3y agoOK, I forgot to mention ceteris paribus. So you suggest, by analogy, that higher gas prices might reduce demand for electric vehicles by pre-emptively emptying drivers' wallets ?