When a tax is levied on a good buyers are worse off but not sellers.

Name: When a tax is levied on a good buyers are worse off but not sellers.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

When a tax is levied, both buyers and sellers are worse off. Buyers have to pay a higher price for the good due to the tax, while sellers receive a lower price after the tax is imposed. The tax burden is shared between buyers and sellers depending on the elasticity of demand and supply.

When a Tax Is Levied on a Good Buyers Are