Question

Synthesizing Information As you read, complete the sentence below. If the government lowers taxes in a market economy, benefits for individuals and businesses will __________.​

Answer 1

increase.

Step-by-step explanation:

The higher the demand the higher the supply. So if taxes are lowered individual will not have to spend more to buy less and business will not have to add more profits on goods inother to gain their estimated annual profit. Therefore, prices of goods and services become less and individuals gets more purchasing power to buy more. This becomes a win-win solution.