Question

when government imposes taxes on a commodity how it will effect supply of a commodity?explain with diagram

Answer 1

Answer:

Here is your answer mate..

Explanation:

An excise tax is a tax on a specific commodity. Such a tax may raise the price of the commodity to the consumer and reduce the net price received by the producer. It generally will do both and reduce the amount marketed and purchased. The effects will depend upon the mechanism which determines the market price and that will depend upon the market structure; i.e., the extent of competition in the market.

The impact of a tax or subsidy on a protected monopoly is dealt with elsewhere.

Sorry I want to complete my syllabus because tomorrow is my science exam 50 marks so I have not time to draw a diagram plz follow me and mark me as Brainlitest plz