With a tax on consumers, demand:
A) increases.
B) decreases.
C) remains in the same location.
D) shifts in an indeterminate direction.

Name: With a tax on consumers, demand: A) increases. B) decreases. C) remains in the same location. D) shifts in an indeterminate direction.
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Question

Quizplus · Accepted Answer

When a tax is imposed on consumers, the price of the product increases. This increase in price causes consumers to reduce their demand for the product resulting in a decrease in demand.

With a Tax on Consumers, Demand