When a Tax Is Levied on the Sellers of a Good

question 116

Multiple Choice

When a tax is levied on the sellers of a good:

• A)both buyers and sellers are economically worse off
• B)only sellers are worse off because they have to pay the tax
• C)only buyers are worse off because sellers pass the tax on to them
• D)there is no change because sellers will produce a different good for buyers to purchase