5. Questions and Problems 8 You read in a business magazine that computer firms are reaping high profits. With the theory of perfect competition in mind, what do you expe happen over time? Complete the following sentences to describe the long-run adjustment. The number of computer firms in the market will increase The number of computers in the market will decrease Computer prices will The profits of computer firms will

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Laffer Curve Analysis

In terms of economics, the Laffer curve was popular among those economists who were or who belonged to the supply side of the economic peripheral.  This concept was popularized by the famous supply-side economist known as Arthur Laffer. This curve illustrated the relationship between the tax rates and government revenue. It is already known that the tax which the public or individuals residing in an economy bear is the revenue or income of the government with the help of which the government does all the necessary works in the society, which is beneficial for the economy.