Please enable JavaScript.
Coggle requires JavaScript to display documents.
Indirect taxes, Subsidies and Price controls (Subsidy (3 purposes (Lower…
Indirect taxes, Subsidies and Price controls
Taxes
Indirect Tax
-
Percentage Tax
As price increases, Tax will increase too
Imposed on the supply, shifts supply curve to the left
-
-
Subsidy
-
3 purposes
- Lower the price of essential goods
- To guarantee the supply of products that government think are necessary for the economy
- To enable producers to compete with overseas trade
Shifts the supply curve to the right, decreasing the price
-
Price Controls
-
Minimum Price controls
-
To attempt to raise income for producers of goods and services government think are important e.g. agricultural goods
-
-