Taxes are a part of a civil society, but they have a significant effect on supply and demand for goods. A tax is an extra cost added to an exchange. What is the effect of tax on a markets equilibrium point?

It causes the Equilibrium price point to fall.

Explanation: Taxes are levies imposed by Government on individuals and business Organisations with the aim of generating revenue for use in the running of the state. When taxes are added, they cause prices to increase,when prices increase,the demand for the product or commodities by Consumers and the supply of the products or commodities by suppliers will reduce, all these will cause the Equilibrium price point to fall or reduce.

answerindustrial revolution;