When a tax is levied on a good,what is the effect on buyers and sellers and who is worse off
A)Buyers pay less, sellers receive less, and they are both worse off.
B)Buyers pay more, sellers receive more, and they are both worse off.
C)Buyers pay less, sellers receive more, and they are both worse off.
D)Buyers pay more, sellers receive less, and they are both worse off.

Question

Quizplus · Accepted Answer

When a tax is levied on a good, the price the consumers pay will increase, while the price sellers receive will decrease. Consequently, buyers pay more, sellers receive less, and they are both worse off. Therefore, choice D is the correct answer.

When a Tax Is Levied on a Good,what Is the Effect