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 leftward.

Question

Quizplus · Accepted Answer

Imposing a sales tax on sellers of a product will increase their costs of production, as they will have to pay the tax to the government, resulting in a decrease in their profit margins. This is similar to an increase in the costs of production.

Imposing a Sales Tax on Sellers of a Product Has