A tax on sellers causes

Name: A tax on sellers causes
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A tax on sellers is a type of supply-side tax, which means it affects the price and quantity of the good being sold. When a tax is placed on sellers, the cost of production for the seller increases, which means they will have to charge a higher price to maintain the same level of profit. This causes the supply curve to shift leftward, resulting in a higher equilibrium price and a lower equilibrium quantity. Therefore, choice A is the best answer.

A Tax on Sellers Causes