18)

Your friend Hua complains that the increase in your state's sales tax will result in higher prices for buyers. Is she right?

(a) Yes, because buyers are the ones with the legal responsibility to pay the tax.

(b) No, because taxes reduce prices for buyers and raise prices for sellers.

(c) Probably, because it is unlikely that supply is perfectly elastic.

(d) Probably not, because it will be sellers who "write the check."