Question
Im not sure what they mean by question 7b 7.In your conclusion: a. Discuss the effect of the removal of the GST on price, quantity
Im not sure what they mean by question 7b
7.In your conclusion:
a. Discuss the effect of the removal of the GST on price, quantity and revenue.
b. Comment on how much of the GST saving the airline is passing onto its customers, why this
might be so; and, how revenue might differ if the company passed on all of the saving.
below are the calculations
7 a.The company's operating costs will be reduced due to lower GST costs. On the other hand, consumers will benefit from lower tax rates and lower commodity prices to ensure that consumers can normally enjoy the rights and interests brought by lower taxes. Consumers are more enthusiastic about buying this product, which leads to an increase in the number of products sold. Eventually the income will increase.
b.
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