Maurice Tutor

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Teaching Since: May 2017
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  • MCS,PHD
    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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    Phoniex University
    Oct-2001 - Nov-2016

Category > Management Posted 21 Oct 2017 My Price 4.00

National Governors Association

Goolsbee (2000) found that people who live in high sales tax areas are much more likely than other consumers to purchase over the Internet, where they are generally exempt from the sales tax if the firm is located in another state. The National Governors Association (NGA) proposed a uniform tax of 5% on all Internet sales. Goolsbee estimates that the NGA’s flat 5% tax would lower the number of online customers by 18% and total sales by 23%. Alternatively, if each state could impose its own taxes (which average 6.33%), the number of buyers would fall by 24% and spending by 30%. Use an indifference curve-budget line diagram to illustrate the reason for his results.

 

Answers

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Status NEW Posted 21 Oct 2017 02:10 PM My Price 4.00

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