The graph shown demonstrates a tax on buyers. After the tax is in place, sellers experience:

Name: The graph shown demonstrates a tax on buyers. After the tax is in place, sellers experience:
Brand: Quizplus
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Question

Quizplus · Accepted Answer

After a tax is imposed on buyers, the demand for the good decreases and the price received by sellers decreases. As a result, sellers are not willing to supply the same quantity at the lower price they receive, hence leading to a decrease in quantity supplied.

The Graph Shown Demonstrates a Tax on Buyers