The initial effect of a tax on the buyers of a good is on:

Name: The initial effect of a tax on the buyers of a good is on:
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Question

Quizplus · Accepted Answer

A tax on buyers of a good will increase the price of the good, which will result in a decrease in demand for that good. Therefore, the initial effect of a tax on buyers of a good is on the demand for that good, making choice B the correct answer.

The Initial Effect of a Tax on the Buyers of a Good