If Congress levies an additional tax on luxury items, the prices of these items will rise. However

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"If Congress levies an additional tax on luxury items, the prices of these items will rise. However this will cause demand to decrease, and as a result the prices will fall back down, perhaps even to their original levels." Do you agree with this statement? Explain.
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Managerial Economics

ISBN: 978-0133020267

7th edition

Authors: Paul Keat, Philip K Young, Steve Erfle

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