A tax imposed on the buyers of a good will

Name: A tax imposed on the buyers of a good will
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A tax imposed on the buyers of a good will increase the overall cost for buyers, thus leading to an increase in the price buyers pay. However, this increase in cost will result in a decrease in demand, which will lower the effective price sellers receive, as buyers will be willing to pay less. Therefore, the tax will raise the price buyers pay and lower the effective price sellers receive.

A Tax Imposed on the Buyers of a Good Will