A tax on buyers of a good impacts prices paid by buyers and received by sellers, along with the equilibrium quantity sold.
An important concept to understand in economics is the impact of taxes on buyers and sellers in a market. When a tax is imposed on buyers of a good, it increases the price paid by buyers, decreases the net price received by sellers, and can reduce the equilibrium quantity of the good sold. This change results from the tax burden being shared between buyers and sellers.
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