In a market with a downward-sloping demand curve and an upward-sloping supply curve, a tax placed on sellers will cause sellers to receive a lower price and buyers to pay a higher price.
False
True
True
In a market with a downward-sloping demand curve and an upward-sloping supply curve, when a tax is placed on sellers, it typically results in sellers receiving a lower price (after accounting for the tax) and buyers paying a higher price. The tax creates a wedge between the price buyers pay and the price sellers receive, leading to a decrease in the effective price for sellers and an increase in the price for buyers.