Many state governments are looking for new revenue sources, and a tax on internet purchases has been proposed by many. To an economist, this could be modeled by

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A tax on internet purchases can be seen as an increase in the cost of selling goods online, which would be modeled as a decrease in supply. This decrease in supply would lead to a higher price for consumers and a lower quantity of goods sold, as the cost of production (including the tax) would be higher for sellers.

Many State Governments Are Looking for New Revenue Sources, and a Tax