If the demand curve for hamburgers is downward sloping and the supply curve for hamburgers is upward sloping,then a tax imposed on hamburgers ________ the price paid by buyers and ________ the price received by sellers.

Question

Quizplus · Accepted Answer

When a tax is imposed on a good, the supply curve shifts to the left because the taxes increase the cost of production for suppliers. As a result, the equilibrium price paid by buyers increases, and the equilibrium quantity of the good decreases. Therefore, the price paid by buyers increases, and the price received by sellers decreases, leading to a higher price for consumers and lower revenue for producers.

If the Demand Curve for Hamburgers Is Downward Sloping and the Supply