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Consider the product market for 'New York' steaks. Draw the provable supply and demand curve for this product and identify the equilibrium price and quantity.
1. Consider the effect of a 'snafu' in the withholding tax on all consumers in this market which gives each customer a tax rebate from their employer. if consumers spend this rebate from their employer. If consumers spend this revote on New York Steaks identify the new equilibrium price and quantity in this market.
B) Government law makers decide to declare steaks a luxury item and levy a tax on all retail sales. Discuss the effect of the tax after the 'snafu'. Could these effects cancel each other and return the market to the pre-snafu level?
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