The President is considering the following policies, each of which is aimed at reducing violent crime byreducing the use of guns. In your report, illustrate each of these proposed policies in a supply-and-demanddiagram of the gun market, and explain whether the policy will have the desired effect on the gun market.
1. a tax on gun buyers
2. a tax on gun sellers
3. a price floor on guns
4. a tax on ammunition

Question

08-02-2021
Business

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The President is considering the following policies, each of which is aimed at reducing violent crime byreducing the use of guns. In your report, illustrate each of these proposed policies in a supply-and-demanddiagram of the gun market, and explain whether the policy will have the desired effect on the gun market.
1. a tax on gun buyers
2. a tax on gun sellers
3. a price floor on guns
4. a tax on ammunition

Sagot :

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Answer:

Option 1

Explanation:

The best method to reduce the consumption of any goods or service is to increase the price of the product or services to such an extent that buyers themselves prefer not to buy such good or service.

Hence, the government must put tax on gun buyers. The more tax is implied, the more the demand for guns will reduce as the buyers will not prefer to buy.

Hence, option 1 is correct

Sagot :

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