If the State of California raised the average state consumer sales tax rate from 9.25 percent to 15 percent, then this sales tax will have its heavist impact on and raise the marginal cost curves for California businesses.

a. True
b. False

Consumer sales tax is not charged to businesses but rather to the customers through a business. The tax would therefore increase the prices of goods and services for consumers and not the businesses.

The businesses would therefore not see their marginal cost curves increase. They could still be affected however, by Californians demanding less goods and services because it is now more expensive for them on account of the new sales tax.

If the State of California raised the average state consumer sales tax rate from 9.25 percent to 15 percent, then this sales tax will have its heavist impact on and raise the marginal cost curves for California businesses. a. True b. False

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If the State of California raised the average state consumer sales tax rate from 9.25 percent to 15 percent, then this sales tax will have its heavist impact on and raise the marginal cost curves for California businesses.

a. True
b. False