In this lesson, we looked at the various taxes that individuals have to pay. In three to four sentences, explain how taxes influence consumer decisions and buying power.

Income taxes reduce the amount of money that an employed individual brings home. This causes individuals to have less disposable income to spend. Additionally, when taxes are applied to goods that consumers purchase, they are spending more for individual items. This means that many consumers must weigh their opportunity costs and decide between items to purchase.

Explanation:

Answer Link

topeadeniran2 topeadeniran2 · Answer 2 · 2021-10-02T19:26:27+02:00

Taxes influence consumer decisions as they lead to an increase in the price of goods and reduces the purchasing power of people.

Taxes refer to the levies that are paid by people and businesses to the government. Taxes are vital to the government as they are a source of income to the government.

There are two main types of tax which are the direct and indirect tax. Direct tax is a tax that's levied directly on people. An example is income tax. On the other hand, the indirect tax is levied on the goods and the services that are bought by people.

It should be noted that taxes lead to an increase in price. For example, when a company is taxed, a good that should be sold for maybe $10 can be increased to $12 as the people that buy the product will bear the cost. This leads to an increase in the price of the good.

Lastly, taxes also reduce the purchasing power of a person. When a good is taxed, there is an increase in price which means that the consumer will have to buy a lower quantity of that good.

Read related link on:

https://brainly.com/question/11649511