On September 14th, 2023, the Canadian government threatened major grocers (Loblaws, Costco, Walmart, etc.) with new taxes if they failed to lower their food prices.

Assume that the government imposes such taxes. Using a supply and demand diagram, show what effect this has on the equilibrium in the market for food. Does this help to lower food prices? If you were in charge of the government, how would you reduce food prices for Canadian consumers?

Answer rating: 100% (QA)

Introduction On September 14th 2023 the Canadian government took action to influence major grocers including Loblaws Costco Walmart etc by threatening ... View the full answer