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You observe Andrew throwing beans at his brother Ivan. His babysitter repeatedly tells him that she will punish him if he throws another bean, but he continues his bean throwing without any consequence. When his mother comes home and has lunch with the three of them, he throws a bean and his mother punishes him immediately. From then on, Andrew does not throw beans when his mother is home. Analyze the associations here that control Andrew. Is there any occasion setting?
Excise Tax
A tax applied to specific goods, services, or activities, often with the intention of reducing consumptions, such as taxes on tobacco or alcohol.
Tax Incidence
The study of who ultimately bears the economic burden of a tax, whether producers or consumers.
Inelastic Demand
A situation where the demand for a product does not significantly change with a change in its price.
Excise Tax
A tax levied on the sale of particular goods and services, such as alcohol, tobacco, and gasoline.
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