A tax on the sellers of popcorn

Name: A tax on the sellers of popcorn
Brand: Quizplus
Rating: 4.8 (59 reviews)

Question

Quizplus · Accepted Answer

A tax on sellers would increase the cost of producing and selling popcorn, which would lead to a decrease in the supply of popcorn as some sellers would exit the market or reduce the amount of popcorn they produce. Consequently, this decrease in supply would lead to an increase in the market price of popcorn, which would reduce the quantity demanded. Hence, the size of the popcorn market would decrease.

A Tax on the Sellers of Popcorn