When a Tax Is Imposed on Sellers of a Good

question 89

Essay

When a tax is imposed on sellers of a good, the resulting rise in the equilibrium price is usually less than the amount of the tax itself. Why doesn't the equilibrium price rise by the full amount of the tax?

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Definitions:

Childrearing

The process of bringing up, nurturing, and educating a child from infancy to adulthood.

Finances

The management of large amounts of money, especially by governments or large companies, but also pertaining to individual or personal money management.

Widowed

The state of having lost one's spouse through death.

Self-Care

The practice of taking action to preserve or improve one's own health, wellbeing, and happiness, particularly during periods of stress.