A tax on the sellers of coffee:

Name: A tax on the sellers of coffee:
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A tax on the sellers of coffee increases the costs of production for sellers, leading to a decrease in the quantity supplied at every price point. This is represented by a leftward shift in the supply curve, which results in a higher equilibrium price and a lower equilibrium quantity. Buyers may also reduce their demand for coffee due to the higher price, but this is not the direct effect of the tax.

A Tax on the Sellers of Coffee