A tax on a good or service ________ the price that buyers pay and ________ the price that sellers receive.

Question

Quizplus · Accepted Answer

A tax on a good or service raises the price that buyers pay because the tax is typically added to the selling price, making the good or service more expensive for consumers. It lowers the price that sellers receive because the tax effectively reduces the net income they earn from the sale, as part of the sale price is diverted to the government in the form of the tax.

A Tax on a Good or Service ________ the Price