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Find an article from a newspaper or magazine that exemplifies a tax or tariff (a tariff is very similar to a tax on imports and
Find an article from a newspaper or magazine that exemplifies a tax or tariff (a tariff is very similar to a tax on imports and has similar effects to a tax on the imported goods). Briefly explain the tax. Additionally, answer the following questions:
- What happens to the producer, consumer and total surplus because of this tax?
- Does the article address these gains or losses?
- Does the article state what will happen (or has happened) to the prices the buyers pay, the amount of money the seller receives, or the quantity of transactions?
- Is the reduction of transactions involving the taxed good beneficial or harmful. Alternatively, are there beneficial aspects of having the tax in place (perhaps beyond just the tax revenue the government can spend)?
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