Since a tax imposed on buyers of a product only affects demand, such a tax has no impact on sellers in that market.

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Since a tax imposed on buyers of a product only affects demand, such a tax has no impact on sellers in that market.​

Annie Hurley · Accepted Answer

Final Answer : False, Explanation :  A tax imposed on buyers effectively reduces their willingness or ability to pay for a product, which can lead to a decrease in demand. However, this decrease in demand also affects sellers, as they may have to lower prices to sell their product or face reduced sales volume, impacting their revenue and potentially their supply decisions. Thus, a tax on buyers indirectly affects sellers in the market.

Since a tax imposed on buyers of a product only affects demand, such a tax has no impact on sellers in that market.

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Since a tax imposed on buyers of a product only affects demand, such a tax has no impact on sellers in that market.​

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Learning Objectives

Related questions

Since a tax imposed on buyers of a product only affects demand, such a tax has no impact on sellers in that market.