A sales tax imposed on tires ________ consumer surplus and ________ producer surplus.

Name: A sales tax imposed on tires ________ consumer surplus and ________ producer surplus.
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Question

Quizplus · Accepted Answer

A sales tax on tires decreases consumer surplus because consumers have to pay more for tires, reducing the overall satisfaction or benefit they get from their purchase. It also decreases producer surplus because the tax can lead to a decrease in the quantity of tires sold, reducing the overall revenue and benefit to producers.

A Sales Tax Imposed on Tires ________ Consumer Surplus and ________

A Sales Tax Imposed on Tires Consumer Surplus and