What will a tax placed on the seller of a product do to the equilibrium price and quantity

Question

Quizplus · Accepted Answer

A tax on the seller of a product will increase the cost of production and decrease the incentive to supply the product. This will lead to a decrease in the supply and a shift of the supply curve to the left. This shift will create a new equilibrium at a higher price and a lower quantity. Therefore, the equilibrium price will increase and the equilibrium quantity will decrease.

What Will a Tax Placed on the Seller of a Product