Homework Help-explain how a tax or an increase of an already existing tax on the good the firm produces would affect the price and quantity sold of the product.
For the particular firm/business you selected, explain how a tax or an increase of an already existing tax on the good the firm produces would affect the price and quantity sold of the product.
How might a firm change their decisions regarding the price or amount of the good to produce? What would you expect the incidence of the tax to be?
Would it fall mostly on the buyers or seller? Would you expect the number of sales to change significantly or not? What would happen to the firm’s profit? Explain.
