answersLogoWhite

0

Well, producers pay it, so it raises the cost of the final product, lessening the appeal of the item as some can't afford it and others who can afford it still opt for a lower price alternative. Say, renting a video rather than going to a movie. So0, it raises costs and lowers sales. Generally.

User Avatar

Wiki User

16y ago

What else can I help you with?

Related Questions

How can taxes and subsidies effect in supply?

Taxes can decrease the supply when they are raised and increase the supply when they are lowered. Subsidies, on the other hand, can raise the supply when raised and lower the supply when they are lowered.


What are the market........?

Supply, demand, capital, labor--laws. Tariffs and taxes have an effect on the economy, too.


What are the market forces?

Supply, demand, capital, labor--laws. Tariffs and taxes have an effect on the economy, too.


What is an increase in demand likely to lead to?

If there is an increase in demand, there will be increase in the price of the product if the supply remains the same. But if the manufacturer or supplier is able to supply increased quantity of product there will be no major effect.


In an aggregate demand-aggregate supply diagram what will equal decreases in government spending and taxes do?

No effect. Spending will decrease Aggregate Demand, lower taxes will raise Aggregate Demand


What was one effect of british taxes on colonist?

One effect of the new British taxes on colonist were protests.


Difference between demand and supply and what causes each?

The words are just what they say. Demand is how much desire consumers have for a product or service. Supply is how much of a product or service is available. When demand is great and supply is low the price of a product or service increases. When demand is low and supply is great, the price of a product or service decreases. The effect on price is the quantification of supply and demand. Demand in many instances is driven by disposable income and free time. Henry Ford recognized this in increasing the wages of his workers and decreasing their work time. See the related link below.


How do taxes affect money supply?

Under the current economic circumstances in the USA, that is, government spending remains far above tax receipts, the treasury issuing bonds which are purchased by the Federal Reserve using quantitative easing, taxes will effect the money supply in an inverse relationship. That is, for every tax dollar collected, a dollar is removed from the money supply. Taxes are therefore deflationary under the current circumstances.In other times and circumstances, when government properly modulates its spending such that taxes and spending are closely related to each other, increase of taxes will result in an offsetting increase in spending. In this case, taxation is not deflationary or inflationary, and there is no net impact to the money supply.


What was one effect of new british taxes on colonists?

One effect of the new British taxes on colonist were protests.


What does supply mean in economics?

Supply is the amount of a product.


What will a leftward shift of a product supply curve might be caused by?

A leftward shift of a product supply curve typically indicates a decrease in supply, which can be caused by factors such as an increase in production costs (like raw materials or labor), government regulations or taxes that make production more expensive, or adverse events like natural disasters or supply chain disruptions. Additionally, a decrease in the number of suppliers in the market can also contribute to this shift. Overall, these factors reduce the quantity of the product that producers are willing or able to supply at each price level.


Decreases in aggregate supply can be caused by?

Lower Taxes