A tax on sellers:

Question

A tax on sellers:

Quizplus · Accepted Answer

A tax on sellers will increase the cost of production for the suppliers, leading to a decrease in supply. This will cause the supply curve to shift vertically upwards by the amount of tax. As a result, the equilibrium price will increase, and the equilibrium quantity will decrease. This is because the tax on sellers reduces the supply of the goods in the market. Additionally, a tax on sellers has the same effect on the market as a tax on buyers of the same amount. Therefore, all of the given statements are true.

A Tax on Sellers