how-does-the-imposition-of-a-tax-on-a-good-affect-its-supply-and-demand

Question

How does the imposition of a tax on a good affect its supply and demand?

Accepted Answer

It decreases supply and increases the price, leading to a decrease in demand.

Answer

It has no effect on supply or demand.

Answer

It increases both supply and demand.

Answer

It increases supply and decreases the price, leading to an increase in demand.