Principles of Macroeconomics 7th Edition

Published by South-Western College
ISBN 10: 1-28516-591-8
ISBN 13: 978-1-28516-591-2

Chapter 6 - Supply, Demand, and Government Policies - Questions For Review - Page 129: 6

Answer

Tax on buyers will increase cost for buyers, lower sellers' profits, and drop amount of units sold.

Work Step by Step

This is asking to identify how taxes work which means buyers pay more and buy less units and sellers receive less because less units are sold and the units overal sold decline because of higher prices.
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