If a tax is imposed on a market, buyers will pay more for their purchases and sellers will receive less for their sales.

Question

Quizplus · Accepted Answer

When a tax is imposed on a market, it increases the cost of production for sellers. To compensate for the added cost, sellers raise the price of their products. This, in turn, results in buyers paying a higher price for the product. Therefore, buyers pay more, and sellers receive less due to the tax imposition.

If a Tax Is Imposed on a Market, Buyers Will