Asked by Irene Lujano on Jul 20, 2024
Verified
Taxes affect market participants by increasing the price paid by the buyer and received by the seller.
Market Participants
Individuals or institutions that are involved in buying, selling, and trading in financial markets, including buyers, sellers, investors, speculators, and market makers.
Price Received
The actual amount of money received by a producer or seller from a buyer for a unit of goods or services, after discounts, taxes, and any other adjustments.
- Grasp the nuances of how taxes disrupt market steadiness, taking into account the alterations in consumer surplus, producer surplus, and the fiscal receipts of the government.
Verified Answer
DM
Devon MarreroJul 24, 2024
Final Answer :
False
Explanation :
Taxes typically increase the price paid by the buyer but decrease the price received by the seller, as they create a wedge between the two prices.
Learning Objectives
- Grasp the nuances of how taxes disrupt market steadiness, taking into account the alterations in consumer surplus, producer surplus, and the fiscal receipts of the government.