If a tax is levied on a market, sellers will receive more for their goods and buyers will have to pay more for their purchases.

Question

Quizplus · Accepted Answer

When a tax is levied on a market, it generally leads to sellers receiving less for their goods because part of the price paid by buyers is taken by the tax. Buyers also end up paying more for their purchases due to the tax being added to the selling price.

If a Tax Is Levied on a Market, Sellers Will