Wednesday, 8 April 2015

SALES TAX AND SUPPLY CURVE

Term of the Day

sales tax

Ad Valorem Tax levied on sale of goods or services. Unlike a value added tax (VAT, levied only on the net increase in price at every point a good or service moves from one seller to the next purchaser) sales tax is a cost and involves double taxation (tax on tax) because it is imposed on the gross price (seller's net cost price + sales-tax paid by the seller + seller's profit) at each point ...
Learn more about this term
Usage Example
There was a sales tax that we had to pay to the state which was only a small amount of money compared to our profits.
Term of the Day

supply curve

A graph showing the hypothetical supply of a product or service that would be available at different price points. The supply curve usually slopes upward, since higher prices give producers an incentive to supply more in the hope of making greater revenue. In the short run the price-supply tradeoff is greater than in the long run. In the short run, anincrease in price will usually cause an
Learn more about this term
Usage Example
This backward bending labour supply curve shows how the change in real wage rates affects the number of hours worked by employees.

Notable Quotable
"The only place where success comes before work is in the dictionary."
-Vidal Sassoon
Post a Comment

Google Mentoring Startup Entrepreneurs Daily update ⋅ October 17, 2017

To thrive,  startups  need great  mentors ; here's how to find them WCPO He provides plenty of networking opportunities between  ...