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?

Select the correct answer below:

O price is higher and quantity is lower

price is lower and the quantity is higher

tax increases supply and demande

there is no effect

O price is higher and quantity is lower

Explanation:

Taxes are compulsory levies, fines that businesses have to make to the government. Taxes are imposed on income of workers, profits made on businesses and on imports.

When goods are taxed, it raises the price of good. Depending on how much the tax amount is, a good may become very expensive and this decreases quantity supplied.

Tax would increase the amount that buyers pay for a good, and reduce the quantity of goods that are being supplied to a seller.

the aksumite empire was an ancient kingdom located in what is now northern ethiopia from the period of 100 ad to 940 ad. its capital was the city of aksum. the kingdom established itself as one of the 4 great powers at its time, along with persia, rome, and china.

the kingdom was rich in goods like gold, iron, and salt. it established strong commercial ties with the regions governed by rome, egypt, and persia (arabia). aksum was a key location in this commercial network. trade was also facilitated with the introduction of the aksumite currency.