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Asked: 2024-07-07T07:49:07-04:00 In:

A tax imposed on the sellers of a good will raise the

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A tax imposed on the sellers of a good will raise the

  • price paid by buyers and lower the equilibrium quantity.
  • price paid by buyers and raise the equilibrium quantity.
  • effective price received by sellers and lower the equilibrium quantity.
  • effective price received by sellers and raise the equilibrium quantity.



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    2 Answers

    1. Anonymous

      price paid by buyers and lower the equilibrium quantity.

    3. Anonymous

      A tax imposed on the sellers of a good will raise the price paid by buyers and lower the equilibrium quantity.

      This outcome occurs because the tax shifts the supply curve upward by the amount of the tax. Sellers will try to pass some or all of the tax onto buyers in the form of higher prices. However, the higher price reduces the quantity demanded by buyers, resulting in a lower equilibrium quantity. Therefore, the correct option is:

      price paid by buyers and lower the equilibrium quantity.