Answer:
When a tax is placed on a product, its price increase, so your sales for it may decrease. People react to the higher price by buying similar products.
Explanation:
The economy is a very changing process that depends on many factors such as inflation and the demand for products.
The market for products depends on the "law of demand" which establishes that high prices have a lower number of sales, and products with a lower price have a higher demand.
For example, in the case where the market raises taxes on products cause prices to rise, this affects that sales may decrease, causing losses to companies. Customers will choose the products that have the lowest prices, and if they do not choose the products that are similar but with a better price.
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<em>I hope this information can help you.</em>
It was Vigdís Finnbogadóttir of Iceland in the 1989 presidential election.
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