Ask Question
BusinessBusiness
15 August, 14:53

A tax on the buyers of sofas a. increases the size of the sofa market. b. has no effect on the size of the sofa market. c. may increase, decrease, or have no effect on the size of the sofa market. d. decreases the size of the sofa market.

+5
Answers (1)
  1. 15 August, 15:13
    0
    d. decreases the size of the sofa market.

    Explanation:

    Buyers of sofas form the market for sofas. They are the customers who buy the sofas. If a tax is imposed on the buyers, it decreases their disposable income. The demand for sofas is likely to drop as the ability of the buyers to purchase is reduced.

    As buyers form the markets of a product, a decline in their purchasing power results in a reduction in the quantity demanded. The market for sofas will decline as a portion of customers will not afford them.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “A tax on the buyers of sofas a. increases the size of the sofa market. b. has no effect on the size of the sofa market. c. may increase, ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
XYZ, Inc., makes consumer products such as shampoo, conditioner, deodorant, and toothpaste. Recently, market research conducted at a university revealed that consumer tastes have changed, and consumers now want their products to come in pastel
Answers (1)
Swifty Corporation spent $4400 to produce Product 89, which can be sold as is for $5500, or processed further incurring additional costs of $1650 and then be sold for $7700. Which amounts are relevant to the decision about Product 89
Answers (1)
Marketing intermediaries that solicit orders from retailers or other wholesalers and have the products delivered directly from the producer to the buyer are known as:
Answers (1)
Simon sold investment property 2 years ago for $750. simon's basis in the property was $200. simon is receiving $150 per year from the buyer. simon reports this income on the installment method.
Answers (1)
An investment will pay $100 at the end of each of the next 3 years, $200 at the end of Year 4, $300 at the end of Year 5, and $600 at the end of Year 6.
Answers (1)
New Questions in Business
Suppose an American worker can make 20 pairs of shoes or grow 100 apples per day. On the other hand, a Canadian worker can produce 10 pairs of shoes or grow 20 apples per day.
Answers (1)
Shannon purchases a bond for $952.00. The bond matures in 3 years, and Shannon will redeem it at its face value of $1,000. Coupon payments are paid annually. If Shannon will earn a yield of 12%/year compounded yearly, what is the bond coupon rate?
Answers (1)
What are the major functions of the entrepreneur?
Answers (1)
What is the name for the decrease in value of a fixed asset as it gets used and worn out over time?
Answers (1)
Locus Company has total fixed costs of $117,500. Its product sells for $53 per unit and variable costs amount to $43 per unit. Next year Locus Company wishes to earn a pretax income that equals 10% of fixed costs.
Answers (1)
Home » Business » A tax on the buyers of sofas a. increases the size of the sofa market. b. has no effect on the size of the sofa market. c. may increase, decrease, or have no effect on the size of the sofa market. d. decreases the size of the sofa market.
Sign Up Forgot Password?