In 2016, Amazon began charging a 5.75% sales tax on products it sells in the District of Columbia. Holding all else constant, the effect of this tax would be to _____ in the District of Columbia.
A)increase Amazon sales
B)decrease Amazon sales
C)decrease prices for local businesses
D)decrease the number of consumers

Question

Quizplus · Accepted Answer

The sales tax would increase the price of products sold by Amazon, making them less attractive to consumers and potentially leading to a decrease in sales.

In 2016, Amazon Began Charging a 5