Asked by Karina Goldberg on May 21, 2024
Verified
A tax on buyers decreases the quantity of the good sold in the market.
Good Sold
Refers to merchandise or items that have been purchased or exchanged in a transaction.
Tax on Buyers
is a tax that is directly levied on consumers when they purchase goods or services, effectively increasing the purchase price.
- Assess the repercussions of taxing on market scale and price stability.
Verified Answer
SP
SANJANA PANDITMay 21, 2024
Final Answer :
True
Explanation :
A tax on buyers effectively increases the price they have to pay for the good, which typically leads to a decrease in the quantity demanded, thus reducing the overall quantity of the good sold in the market.
Learning Objectives
- Assess the repercussions of taxing on market scale and price stability.