A tax on the sellers of TVs

Name: A tax on the sellers of TVs
Brand: Quizplus
Rating: 5.0 (56 reviews)

Question

Quizplus · Accepted Answer

A tax on sellers increases their costs of production, which means that they will be less willing to supply the same quantity of the good at every price level. As a result, they will supply a smaller quantity at every price. On the other hand, the tax on sellers will not affect the demand curve directly, so there will be no change in the quantity demanded by buyers at every price. Therefore, (a) is correct, and (b) is incorrect.

A Tax on the Sellers of TVs