Problem
1. Summaries the arguments for and against the proposition that progressive taxes have dis-incentive effects.
2. What is the 'poverty trap'?
3. Using supply and demand curves, show how the incidence of an indirect tax is shared between producers and consumers when the impact is initially on consumers.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.