Subsidies and taxes really shape how we choose to buy things. Here’s how they work together:
Subsidies: These help lower the prices of certain products, which makes us want to buy them more. For instance, if public transport costs less because of a subsidy, more people are likely to use it.
Taxes: These make things more expensive, which can stop us from buying them. A good example is taxes on tobacco; they make smoking less tempting.
When subsidies and taxes work together, they can change what we like and what we decide to buy.
Subsidies and taxes really shape how we choose to buy things. Here’s how they work together:
Subsidies: These help lower the prices of certain products, which makes us want to buy them more. For instance, if public transport costs less because of a subsidy, more people are likely to use it.
Taxes: These make things more expensive, which can stop us from buying them. A good example is taxes on tobacco; they make smoking less tempting.
When subsidies and taxes work together, they can change what we like and what we decide to buy.