Using Appropriate Diagrams,explain How a Tax on Consumers Could Be

question 65

Essay

Using appropriate diagrams,explain how a tax on consumers could be used not to collect revenue but to to correct for a negative externality in the production of a product.

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Definitions:

Push and Pull Strategy

Marketing techniques where a "push" strategy is used to take the product to the consumer (via distribution channels), and a "pull" strategy motivates consumers to actively seek out the product.

Supply Chain Strategy

The planning and management approach to sourcing, procuring, producing, and distributing goods or services to end users.

Multimodal Transportation

The use of two or more modes of transport to move goods from origin to destination, optimizing costs and efficiency.

Cross-border Trade

Trade that occurs when goods or services are exchanged across national borders.