Asked by Tyrik Lawson on Jun 19, 2024
Verified
A tax on sellers reduces the size of a market.
Market Size
The total potential sales volume or number of consumers available to a product or service within a given market.
Tax on Sellers
A financial charge imposed on sellers of goods or services, which can affect the supply and pricing of those goods or services.
- Scrutinize the effect of levies on market expansiveness and the equilibrium of prices.
Verified Answer
FH
Francis HovanecJun 23, 2024
Final Answer :
True
Explanation :
A tax on sellers increases the cost of selling goods, leading to higher prices for buyers, which can reduce the quantity sold and thus the size of the market.
Learning Objectives
- Scrutinize the effect of levies on market expansiveness and the equilibrium of prices.