Check out the option asap California has higher income taxes than any other state in theUnited States. As a result, many business owners, like ElonMusk and Joe Rogan, have moved their enterprises to stateswith lower state income taxes. As a result, its likely thatCalifornia will start to experience less tax revenue even as theyincrease tax rates. What concept in economics does this bestillustrate?O The Law of DemandO SubsidiesO Price FloorsO The Laffer Curve

An increase in taxes decreases disposable income and aggregate demand and a decrease in taxes…

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ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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California has higher income taxes than any other state in the
United States. As a result, many business owners, like Elon
Musk and Joe Rogan, have moved their enterprises to states
with lower state income taxes. As a result, its likely that
California will start to experience less tax revenue even as they
increase tax rates. What concept in economics does this best
illustrate?
O The Law of Demand
O Subsidies
O Price Floors
O The Laffer Curve

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