Paper Example on High-Income Consumers and Low-Paid: Economic Demand & Supply

Introduction

In the economic world, there is a different class of people that are the consumers in society. The high-income class in the community and the low pay class with their consumers' rates depending on the income. The economic demand and the supply with government invention can be controls when the government imposes taxes on the goods to be consuming. Either in the power of its consumption or the controlee the supply with the demand. The demand and supply curve has shifted and adjusted, responding to the principles and the theories of the economy. Measures put in place for changing the effects of the demand and supply curves (Baker, Jones and Thow, 2017). The nation's health issuance support imposes more taxes on the harmful commodities to reduce its consumption. The taxation of sugar-sweetened beverages (SSB) was initially in traduced in Mexico in the practice of the outlining the way to combat the health problem in the consuming of the sugary drinks. The economic principles and the theories of more so the demand and the supply of the sugary food.

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Question 1

Economic Amplification on Sugar Tax Elaborated in Mexico.

The imposing of tax on the commodities being consumed by the citizens by the government has an impact on general consumption. The tax raises the price of the product. The government is taking the health consideration of side effects of the high increase in the commodities of sugar. Some of these side effects are diabetic diseases and obesity (Ferreira, Fayolle, Fernandes and Raposo, 2016). Also, tooth decay is necessary for sugar consumptions. In 2014 the government of Mexican imposed high taxes on nonalcoholic beverages that its ingredients are sugar. The county is imposing individual taxes by 10% to increase the consumer price. Which statistically showed a general of 7.6% in the sugar purchasing of drinks. The household with low-income reduction by 11.7%.

Moreover, with an increase in the sales of untaxed beverages, they were water. With the ration consideration, the general economy average dropped by 7.6%, which was almost us$1.7 trillion. The low income dropped in consumption by US$ 800 billion, making 11.7% (Gomo and Birg, 2018).

More Responsive to Tax On SSB

Basing on the general statistics of the taxes imposed on the economy; their effect varies with the general economy to the low-income people and the middle class to the high spending class (Gomo and Birg, 2018). The low income is the more impassive to the tax direction of shits in the demand of the demand and supply response on the consumption of the tax imposed on the SSB.

Factors Determining the Responsive Price

The price of the commodity is determined generally by the taxation imposed on it and other factors. The following are some of the imposing factors on price determination. The rate of sources of income affects the price of the commodity (Rojas and Wang, 2017). The high price commodity is affected. The level of living the low class, the middles class, and the top class affects the price of the merchandise. The taxes, too, and being the most that impact with a higher rate the cost of the consumer product. In a grant rang when the government wants to shift the demand on the commodity taxes increase will directly affect the price.

Cross Price Elasticity

The price elasticity demand on the SSB and the untaxed water bottles in the market. The world health organization report that the untaxed beverage increased in sales by 2.1% elevation compared to the taxed sugar beverages in the consumers' preference and occupation.

The change in the quantity divide by the change in price of the commodity. The difference is the changes.200m/150m=1.3m

The cross-price elasticity is the changing of price on two comparable commodities that are on the same sales in customers' choice (Rojas and Wang, 2017). Their ingredient is that the tax is imposing by the government increasing tax. The elasticity is due to the change in the graft of the arc elasticity. It is cultivating from the difference in the price of products at the consumer level—parameters for the variable substitution in the amount of the commodity (Sainsbury, Magnusson, Thow and Colagiuri, 2020).

Supply and Demand on SSB

The price change due to the increase in the charge's taxes imposed in the commodity. The government with reasons on the purchasing power the government increases the imposer of tax hence changing the price of the merchandise and the quantity—the supply and demand changes (Wang, 2018).

The price changes in price p0 and pt show the difference in price due to the change in the supplied reason being that the taxes imposed by the government on the sugar drinks like chocolate the Coca-Cola drinks and any drink with sugar ingrediency the price rose likewise to SSB (Sainsbury, Magnusson, Thow and Colagiuri, 2020). The quantity changes in price and the fear to spend more due to taxes and the human nature of resisting change, making it less demanded.

Tax Effects

The taxes imposition on the commodity is causing the price of the consumers' critical preferences in the customer. The taxes are rising to correspond to the amount that goes up. The sugar I imposed drinks in the referees making its prices rise. The taxes radiuses the demand, and hence the supply is being limits, making the quantity reduce as the price increases due to the taxes that have risen.

The diagram of the difference in the D1 and D2, making it visible in the shifts of demand due to price changes in the improvements of tax. The shift range b showing the charges imposing the fee, making the price change. The pt and p0 is the gradient difference in the change in price (Tahmassebi and BaniHani, 2019). The revenue taxes in the diagram is the calculation of the variable parameter for the price-determining factor and the demand and supply prices.

Recommendation of The Policies

The SSB has been the beverages that use sugars the ingredient in the making of the final product. Having sugar has negative impacts on the health of society. The diseases like obesity and diabetics, in the making of health awareness in the human, to be sensitive to stop the consumption of sugary drinks and substance. Since it is dangerous for life, the diseases might ignore by some persona. Hence taking a full change of the measure to be active and making the price higher by imposing taxes to the general public to affect all classes of the economy.

Impacts of Campaign

Before the taxes are imposing in a product, the company sugar drink is selling at a healthy environment competition of the usual measure in the price and quantity, quality, and the price. However, with the health campaign on the avoidance of the sugary drink. With the scientific proof to the people that the drinks cause diabetic linked diseases and obesity to kids. The campaigning could change the little shift on the curve (Tahmassebi and BaniHani, 2019). They could not make the price but the demand for the products. The demand decreases slower down the supply hence making the products less needed in the market. The price could drop, and the consumer of low income could be affected more by the diseases.

Comparing and Contrasting

The awareness impact on sugar drinks is not drastic but at a slower rate. The imposing taxes is instant price rice in the commodity. The awareness campaign against sugar drinks was mainly effective to the learned and the able to receive information through long-lasting too. While the imposing of tax is the overall impact on the economy and more so the lower class affected (Ferreira, Fayolle, Fernandes and Raposo, 2016). The SSB prices will decrease in the awareness of the drinking sugar beverages of the harmful effects. The demand lowers, and the supply slowed, making the quantity increase, and the price decrease. On the other hand, the taxes imposed meant in the goods hinges the price and lower the quantity due to the higher fees to be paid to the government. Moreover, the taxes imposing increase the revenue to the government drastically since the consumers pay the commodity dearly.

Impact of Combining Awareness and The Tax

The whole combination of the awareness and the tax is the combined force that the SSB will have a significant drop in sales drastically due to the product disowned in the consumer market. The whole economy of the profits of the products drops (Ferreira, Fayolle, Fernandes and Raposo, 2016). The SSB in the society consumption quantity drops drastically the discourage meant in the awareness and the taxes imposed on then products will significantly result in the commodities taking long to consume.

(2) Sugar Tax for Australia Analysis

In the current years in the republic of Australia, the health department has been noticing a graphical, pictorial view in the rise of obesity and diabetic disease. Significantly the condition has been directly proportional to the increase of the sugar drinks and consumer commodities to all classes in the society that the products. The researches came up with the research query on how o combat the diseases associated with the consumption of sugar (Wang, 2018). The sugar taxing being the idea of support by Dr James Muecke. In society, the imposing of the tax by the government in the increasing the price in the market hence reducing the consumption of the commodity in the various class in the society. The general economy drops in the decrease of sugar substance consumptions. The awareness and the public campaign in the rise in the disease on the obesity and the diabetic issue the campaign will long last, and the government will not be exploiting consumers in the view of its interaction. However, having tax imposing Bing the drastic implementation of the drop of sugar drink consumptions. Public awareness is a long-lasting way of living that helps to fight the disease we know about it. The demand and supply curve in the make drastically shifts in the price, and the slider changes the quantity reduction is effective by raising the price, though, but the demand dropping is due to the preference change in the product. The consumers turn to untaxed sugar-free drinks to avoid expensive beverages and are also harmful to health. The jeopardizing sugary drinks and substance being highlights with scientific proof in the human health that is harmful is enough certification for the government to combine all the policies and strategies to reduce the consumption the sugary products in Australia. The hypothesis and the medication support in the consumer level in the society to make the health precaution outline by the combination of the policies by the nation to combat the spread of the disease. Economically the curve has to flatten in principle consideration and the theories that are certified.

(3) Unintended Consequences

In the wake of the economy, taxes can be of great consequence in the cost and the benefits of the situation of the polices. The tax imposing policy is majorly affecting the sales of the market that specialized in sugar products like chocolates, sweets, pallets in the sugar packing ingredients. However, the government imposing tax directly affects the Abisko supermarket because of its products being the majority of the sugar products. The quantity of the products at the supermarket will no longer move in the rate as speculated. The thinks are not at the norm, and the supply tends to be affected by a broader range of influence on the shelves (Sainsbury, Magnusson, Thow and Colagiuri, 2020). The increase in price reduces the demand for the products hence slows down the rate of sales. It is a clear elaboration of the unintended consequence being that majority of th...