Who pays for a tax on foreign bicycles?

Step 1 of 9

START WITH A HUNCH

Would a tax on imported bikes make us richer?

You ride a bike. Some bikes come from factories far away; others are made here. Suppose the government adds a $30 tax when a foreign bike enters the country.

Before we trace the money, what is your first hunch about whether this tax makes people here better off?

Make a prediction

What do you predict?

For grown-ups