Question

define market supply .what is the effect on the supply of a good .when government imposes a tax on the production of the good .? explain​

Answer 1

Answer:

Solution. Market supply refers to the total of quantities supplied by all the firms in the market at different price levels. If, government imposes a tax on the production of a good then, this implies that the cost of production rises. Consequently, the firm will supply lesser units of output.