Question

A tax on the buyers of personal computer external hard drives encourages:_________.

a. sellers to supply a smaller quantity at every price.
b. buyers to demand a smaller quantity at every price.
c. buyers to demand a larger quantity at every price.
d. Both a and b are correct.

Answer 1

Option B. Buyers to demand a smaller quantity at every price

Step-by-step explanation:

The reason is that the computer product price has been increased from the previous price due to imposition of tax on it and as we know that the higher prices will decrease the demand of the product and as a result the buyers are less likely to buy the product as it is now priced high.