Microeconomics: Principles, Problems, & Policies, 20th Edition

Published by McGraw-Hill Education
ISBN 10: 0077660811
ISBN 13: 978-0-07766-081-9

Chapter 20 - Agriculture: Economics and Policy - Discussion Questions: 6

Answer

The answer is below.

Work Step by Step

There are a few flaws with this argument. For starters, it is not as if simply adding a tax means that prices will decrease at the stores: subsidies are mainly just to keep stores open as opposed to being used to keep prices down. In addition, it is not correct to assume that all consumers are taxpayers.
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