what-happens-to-the-prices-for-buyers-and-sellers-when-a-tax-is-imposed-on-a-mar

Question

What happens to the prices for buyers and sellers when a tax is imposed on a market?

Accepted Answer

The price for buyers increases and the price for sellers decreases.

Answer

Both prices remain the same.

Answer

The price for buyers decreases and the price for sellers increases.

Answer

Both prices increase.