Sunday 18 October 2009

DEMAND CURVE SHIFTS .....WITH TAX


This curve shows the changing in the demand curve after tax...we can see that because the putting tax into the product,therefore the price will increase from p1to p2 and the demand curve shifts to the left,and because the price rises and the price elasticity of demand is elastic,people may not buy the products therefore the quantity fall from q1to q2

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