Which of the following takes place when a tax is placed on a good?

Question

Quizplus · Accepted Answer

Placing a tax on a good leads to an increase in the price buyers pay, as sellers pass on some or all of the tax burden to consumers. At the same time, the price sellers receive decreases, as they are now receiving less for each unit sold due to the tax. Finally, the quantity sold decreases, as some consumers may choose to buy less of the good at the higher price, while some sellers may choose to produce less due to the lower price they receive. Therefore, D is the correct answer.

Which of the Following Takes Place When a Tax Is