Question’s in the title……
I’m no economist but I’m sure most of the cost of fuel is Fuel Duty (tax)….. so even though capping the price of fuel would mean governments making less money off fuel-duty, wouldn’t they make this back in VAT on other goods as consumer spending increases? (Because consumers have more money in their pocket?)
In: 2
Price rises usually because demand is rising when compared to the supply and vice versa.
If you just capped the price, and therefore demand remains more or less the same due to usage being the same. What would happen with the supply side?
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