4. Tim moves to a different state and buys a house in his new city. His new house is bigger than the apartment he lived in before, so he also buys new furniture. His
property taxes are higher for his new house, but sales tax he pays on his new
furniture is lower. Which of these taxes is progressive, and which are regressive?
What is the difference between a progressive and a regressive tax? (8 points)

reducing the scale of the market for a new product.

answer; ///blank(1) 75%; blank(2) 40%;

the answer is "b.the increased supply will create a surplus. "

the essential thought behind price controls is straightforward - utilize the power of law to modify the equilibrium of a market. for instance, the legislature may choose that the steel business needs to survive, and in this way pass a law to set a value floor on steel. this implies all steel sold must offer at or over the floor value, which must be set over the equilibrium cost for it to have any impact. the switch could likewise happen - the administration can choose that steel is excessively costly and set a value roof underneath its equilibrium value, with the goal that all steel must be sold at or beneath that ceiling.