If the government removes a tax on a good, then the price paid by buyers will a. decrease, and the price received by sellers will increase. b. increase, and the price received by sellers will increase. c. decrease, and the price received by sellers will decrease. d. increase, and the price received by sellers will decrease.

Question

Social Studies

Zain Meyer

9 February, 11:15

If the government removes a tax on a good, then the price paid by buyers will a. decrease, and the price received by sellers will increase. b. increase, and the price received by sellers will increase. c. decrease, and the price received by sellers will decrease. d. increase, and the price received by sellers will decrease.

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Answers (1)

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Pixie Stick · Answer 1

Answer:decrease, and the price received by sellers will increase

Explanation:

Usually we pay more for the goods because after one has paid for the goods there is also a tax price for the whole items bought hence we end up paying more than the price we should have paid if there was no tax.

But if this tax price on the goods were to be removed the price we would pay for them would decrease and the sellers will have all the increase on the prices that they receive as the tax is being eliminated on the goods.