Question

A tax on the sellers of TVs _______a. leads buyers to demand a smaller quantity at every price. b. leads sellers to supply a larger quantity at every price. c. leads sellers to supply a smaller quantity at every price. d. Both (a) and (b) are correct.

Answer 1

The correct answer is c. leads sellers to supply a smaller quantity at every price

Step-by-step explanation:

When the tax is imposed on the sellers, this reduces the profit they receive from the customers and increases an additional tax expense. Because of this, the sellers reduce the amount they provide and the prices increase as well.