A tax on buyers usually causes buyers to pay more the good and sellers to receive less for the good than they did before the tax was levied.

Question

Quizplus · Accepted Answer

A tax on buyers, also known as a sales tax, is added to the selling price of a good, causing buyers to pay more. However, sellers may also bear some of the burden of the tax in the form of reduced demand, resulting in them receiving less for the good.

A Tax on Buyers Usually Causes Buyers to Pay More