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Hello, I have a basic demand and supply question. Suppose you impose a tax on the sales of everything (pizzas, plumbing services, etc). Textbook theory tells us the following: This tax is equivalent to increasing the cost of production of everything. therefore, producing everything has now become less...
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Hi, I'm sorry if this is a bit of a noob question. But, regarding Say's Law, what the hell does he mean by "for the value of money is also perishable."? I know that the value of fiat money is perishable, but I thought that if the money were gold, then its value would increase over time...
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Hi, Some economists are attributing the increased prices in Europe to increased demand from China. The following reply came to my mind: Is this even possible? Suppose the increase in prices is actually due to increased demand from the Chinese. But demand is supply . Demand is the stuff you offer in exchange...