Explain carefully the given quotation

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Question: Discuss carefully the following quotation: "It is reasonable to assume that business can pass along the full value of the value-added tax to final consumers. But if it is assumed that businesses have the power to raise prices a dollar for each dollar they pay in value-added taxes, then it should also be assumed businesses can similarly raise prices against every dollar they now pay in payroll and corporate income taxes" [Cockburn and Pollim, 1992, p. A15].

Reference no: EM131500378

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