The following figures show the demand (D) and supply (S) curves of micro and macro economists.Figure 16.6

-All taxes distort market decisions, affecting the buying and selling of goods and services.

Question

The following figures show the demand (D) and supply (S) curves of micro and macro economists.Figure 16.6
 
-All taxes distort market decisions, affecting the buying and selling of goods and services.

Quizplus · Accepted Answer

Taxes, whether they are direct or indirect, can distort market decisions by influencing the price of goods and services. For example, a tax on a specific good can increase its price, leading to a decrease in demand and potentially causing the supplier to lower their production. This can ultimately lead to an inefficient allocation of resources in the market.

The Following Figures Show the Demand (D) and Supply (S)