Extra Flashcards
1
Q
- Indirect tax imposed on good
- Drawn on micro supply and demand diagram
A
S1 (supply) shifts left to S1 + Indirect tax (External factor, not market forces bc artificial impact implemented by government.
If labour price increases S1 would shift to S2 bc its an internal factor (trade unions have negotiated wage increase + company has agreed to this –> increases price of product)
