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1653
Dysfunctions Ex. Inflationary effect because the Ex. Adversely affects some industries
(Negative cost of certain products increased (like sugar) because of the eventual
consequences) as their tax rates were increased. preference for lower taxed
Your answer: substitutes.
Your answer:
Widespread poverty because
people with lower income or the poor Company and industry workers will
may not afford the products' prices that demand a higher salary and more reliable
increase their costs due to the increase benefits due to the increased price of
of tax, and this will tend to suffer from products, especially essential commodities.
starvation. Just like when the rice price The only way for the workers to sustain
increases, then it is a considerable effect their needs is to ask for a higher salary.
for those who buy by kilos every day or
those "isang kahid isang tuka." They
need to work to survive every day; what
now if even rice will increase its price,
then that is a total burden that will cause
poverty.