Imposing a Sales Tax on Sellers of a Product Has

question 21

Multiple Choice

Imposing a sales tax on sellers of a product has an effect that is similar to which of the following?

• A) An increase in demand for the good.
• B) A decrease in consumers' preferences for the good.
• C) Anything that decreases the demand and shifts the demand curve leftward.
• D) An increase in the costs of production.
• E) A decrease in people's willingness to work.

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