What effect will a tax on sellers of trampolines have on the price the buyers pay and the effective price the sellers receive

Question

Quizplus · Accepted Answer

When a tax is imposed on sellers, the cost of producing and selling trampolines increases, which leads to a decrease in supply. As a result, the equilibrium price of trampolines increases, and buyers end up paying a higher price. However, the effective price that the sellers receive is lower than before due to the tax. Therefore, the price the buyers pay will rise, and the effective price the sellers receive will fall.

What Effect Will a Tax on Sellers of Trampolines Have