Answered

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If the government increases taxes on foreign steel:

A. Demand will decrease because of the number of buyers.
B. Supply will increase due to higher prices.
C. Supply will decrease, causing prices to increase and quantity to decrease.
D. Neither demand nor supply are affected.

Sagot :

GinnyAnswer

Final answer:

Government increasing taxes on foreign steel decreases the supply, leading to higher prices and a decrease in quantity supplied.


Explanation:

Increasing tax: When the government increases taxes on foreign steel, it shifts the supply curve to the left, leading to a decrease in quantity supplied and an increase in consumer prices. This tax increase does not affect demand but impacts supply, causing a decrease in supply. Therefore, the correct option is Supply will decrease causing price to increase and quantity to decrease.


Learn more about Tax Increase Impact on Supply and Demand here:

https://brainly.com/question/34909918


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