The Demand for Food Is Very Inelastic,making It an Attractive

question 147

Essay

The demand for food is very inelastic,making it an attractive target for taxation.However,some regard taxes on food as unfair.Explain why taxes on food might be regarded as unfair.

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Definitions:

Cash Flow Estimation

This refers to the process of forecasting and evaluating the amount of cash that is expected to flow into and out of a business over a specific period.

NPV

Net Present Value; a method used in capital budgeting to assess the profitability of an investment or project.

IRR

Internal Rate of Return, a financial metric used to evaluate the profitability of potential investments.

Depreciation

The systematic allocation of the cost of a tangible asset over its useful life, reflecting its consumption, wear and tear, or obsolescence.