Decrease demand will send the price down again

Reference no: EM1337787

Identify the fallacy in the following argument: "The effect of an excise tax on a commodity might seem at first sight to raise the price that buyer pay. But an increase in price will diminish the demand. And a reduced demand will send the price down again. It is uncertain, therefore, that the tax will really raise the price."

Reference no: EM1337787

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