Imposing a sales tax on sellers of a product has an effect that is similar to which of the following?
A) a decrease in consumers' preferences for the good
B) an increase in the costs of production
C) an increase in demand for the good
D) a decrease in people's willingness to work
E) anything that decreases the demand and shifts the demand curve leftward2

Question

Quizplus · Accepted Answer

Imposing a sales tax on sellers increases their costs, similar to an increase in production costs, which can lead to a decrease in supply.

Imposing a Sales Tax on Sellers of a Product Has