hen a tax is placed on the buyers of a product, the a. size of the market decreases. b. effective price received by sellers decreases, and the price paid by buyers increases. c. demand for the product decreases. d. All of the above are correct.

Question

Business

Gary Burke

1 August, 04:29

hen a tax is placed on the buyers of a product, the a. size of the market decreases. b. effective price received by sellers decreases, and the price paid by buyers increases. c. demand for the product decreases. d. All of the above are correct.

+2

Answers (1)

Know the Answer?

Leonel Johnson · Answer 1

Here is the correct question:

When a tax is placed on the buyers of a product, the a. size of the market decreases. b. effective price received by sellers decreases, and the price paid by buyers increases. c. demand for the product decreases. d. All of the above are correct.

Answer:

(D) All of the above

Explanation:

When a tax is placed on the buyers of a product, the total existing and potential buyers (size of the market decreases), the net price (price after tax deduction) received by sellers reduces, and the demand for the product also reduces. Thus, ALL of the above is the correct answer (D).