sellers
bread, cake, seller @ Pixabay

A $0.10 tax on chocolate bars may not sound like much, but according to a study done by the National Bureau of Economic Research, it could have some pretty big consequences for consumers and producers alike. The first consequence is that there will be an increase in the price of chocolate bars; as a result, many people will switch to cheaper alternatives such as jellybeans or gummy bears. This leads into the second consequence: producers who no longer sell these lower-quality products will see their revenue decrease drastically while producers of higher quality items (like Godiva chocolates) won’t experience any change at all! But the third and most important consequence has to do with what consumers will buy when they’re in line at a store. If someone is buying candy bars because it’s on sale, that person might decide not to buy anything if he sees chocolate bar prices increase by $0.05 or more; however, if she was going to pay full price for an item like milk anyway, then she may as well get some chocolate just now rather than purchase something else (like eggs) later! This means that raising taxes on chocolate bars can lead people who were already intending to make purchases elsewhere today- such as bread from Safeway-, opt instead for chips and salsa at Vons across the street. Not only does this hurt producers of other

LEAVE A REPLY

Please enter your comment!
Please enter your name here