Asked by Deina Pavon on May 10, 2024
Verified
A tax on sellers increases supply.
Increases Supply
A rise in the quantity of a good or service that producers are willing and able to sell at a given price, often due to reductions in production costs or improvements in technology.
Tax on Sellers
A financial charge imposed by the government on sellers, which can shift the supply curve upward and affect market equilibrium.
- Discern the economic implications of imposing taxes on goods, affecting both demand and supply.
Verified Answer
AS
Andrew StyronMay 11, 2024
Final Answer :
False
Explanation :
A tax on sellers typically decreases supply because it raises the cost of producing or selling the product, making it less profitable or more expensive to produce and sell.
Learning Objectives
- Discern the economic implications of imposing taxes on goods, affecting both demand and supply.