Question

Question 10 (1 point) A sales tax on the sellers of a good or service is also felt by buyer because: a) the tax increases the demand for the good; lowering the market price b) the tax decreases the demand for the good; raising the market price c) the tax increases the supply of the good; lowering the market price d) the tax decreases the supply of the good, raising the market price

          Question 10 (1 point)
A sales tax on the sellers of a good or service is also felt by buyer because:
a) the tax increases the demand for the good; lowering the market price
b) the tax decreases the demand for the good; raising the market price
c) the tax increases the supply of the good; lowering the market price
d) the tax decreases the supply of the good, raising the market price

Question 10 (1 point)
A sales tax on the sellers of a good or service is also felt by buyer because:
a) the tax increases the demand for the good; lowering the market price
b) the tax decreases the demand for the good; raising the market price
c) the tax increases the supply of the good; lowering the market price
d) the tax decreases the supply of the good, raising the market price

Added by Matthew T.

Principles of Economics

Gregory Mankiw 8th Edition

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Solved by Expert Donna Densmore

Step 1

As a result, the sellers may choose to pass on this increased cost to the buyers in the form of higher prices. Show more…

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Question 10 (1 point) A sales tax on the sellers of a good or service is also felt by the buyer because: Qa) the tax increases the demand for the good, lowering the market price Ob) the tax decreases the demand for the good, raising the market price Oc) the tax increases the supply of the good, lowering the market price d) the tax decreases the supply of the good, raising the market price