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

Question

Business

Jameson Becker

31 March, 10:51

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

+5

Answers (1)

Know the Answer?

Milo · Answer 1

A tax imposed on the sellers of a good will lower the effective price received by sellers and lower the equilibrium quantity.

Explanation:

A contribution that is given to the state for increasing the revenue refers to tax. The tax amounts are decided by the government. This will be based on the income of an individual and some of the cot that is added to the goods and services. Tax will be imposed on buyers and also the sellers of specific goods and services.

Price determines the equilibrium quantity of any products or services. When the price of any product increases it will affect the supply and demand of those products or services. The tax imposed on the sellers will reduce the effective price received by sellers and lower the equilibrium quantity.