What does a tax placed on the seller of a good do to the price paid and received

Question

Quizplus · Accepted Answer

A tax placed on the seller of a good raises the cost of production for the seller, so in order to maintain their profit margin, they will increase the price of the good. This increase in price will be passed on to the buyer, resulting in buyers paying more. However, since sellers have to pay the tax, they will receive less money for the sale of the good. Therefore, a tax on sellers will raise the price buyers pay and lower the price sellers receive.

What Does a Tax Placed on the Seller of a Good