A tax imposed on the sellers of a good will
A) raise the price paid by buyers and lower the equilibrium quantity.
B) raise the price paid by buyers and raise the equilibrium quantity.
C) raise the net price received by sellers and raise the equilibrium quantity.
D) raise the net price received by sellers and lower the equilibrium quantity.

Question

Quizplus · Accepted Answer

A tax on sellers increases their costs, leading to a higher price for buyers and a lower equilibrium quantity as the market adjusts to the new tax burden.

A Tax Imposed on the Sellers of a Good Will