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the government removes the entertainment tax on mobies and make it free.if the demand and sipply of movie tickets depend on price then how the removal of yhe tax affects consumer surplus tax revenuse and the whole society |
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Answer» If the GOVERNMENT increases the tax on a good, that shifts the supply curve to the left, the consumer price increases, and sellers' price decreases. A tax INCREASE does not affect the DEMAND curve, nor does it make supply or demand more or less ELASTIC. |
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