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If a government increased a company's tax rate, would that affect their supply or demand? Would it lead to an increase or a decrease?

If a government increased a company's tax rate, would that affect their supply or demand? Would it lead to an increase or a decrease?
asked 59.3k views
2 votes
If a government increased a company's tax rate, would that affect their supply or demand? Would it

lead to an increase or a decrease?

asked
User Norine
by
8.1k points

1 Answer

5 votes

Answer:

If it is an income tax, it will cause a decrease in the supply.

Step-by-step explanation:

answered
User Larry Pickles
by
8.3k points
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