In a market with a downward-sloping demand curve and an upward sloping supply curve, a tax placed on sellers will cause sellers to receive a lower price and buyers to pay a higher price.

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When a tax is placed on sellers, their production cost increases and they are faced with a higher price that they have to sell their product for in order to maintain their profit margin. As a result, the supply curve shifts upward to reflect the higher price. This increase in price is then passed on to the buyers, causing them to pay a higher price. Therefore, sellers receive a lower price and buyers pay a higher price, as the demand curve remains downward sloping.

In a Market with a Downward-Sloping Demand Curve and an Upward