2.) Price Controls Microeconomics economic activity. It is a used to explain the role households and firms engage in. At times, an attempt by the government to regulate the market can impact this engagement in the market. First, briefly explain who pays for a new government-imposed tax on goods; Next, briefly explain the way(s) the market mechanism allows the producer to shift a part of a tax onto the consumer; Then, briefly explain the impacts of a black market if the tax on the new good results in consumers seeking an alternative good in such a market; and Lastly, briefly explain the impact the imposition of a new tax on a good could have on the well-being of consumers. In doing so, be certain to provide in your answer one example of a contemporary microeconomic issue that illustrates this condition.
2.)
First, briefly explain who pays for a new government-imposed tax on goods;
Next, briefly explain the way(s) the market mechanism allows the producer to shift a part of a tax onto the consumer;
Then, briefly explain the impacts of a black market if the tax on the new good results in consumers seeking an alternative good in such a market; and
Lastly, briefly explain the impact the imposition of a new tax on a good could have on the well-being of consumers. In doing so, be certain to provide in your answer one example of a contemporary microeconomic issue that illustrates this condition.
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