What happens to the market for Video Games when the government raises the taxes the producers must pay? Change in Determinant: What happens to price and quantity?__ Group of answer choices Supply, Tax, Price Increases Quantity Decreases Quantity Supplied, Price, Price Decreases Quantity Decreases Demand, Tax, Price Increases Quantity Increases Supply, Tax, Price Decreases Quantity Decreases

What happens to the market for Video Games when the government raises the taxes the producers must pay? Change in Price. Determinant: Tax. What happens to price and quantity? Price Increases Quantity Decreases

Explanation:

When taxes on video game production increase, this also causes the price of video games to increase. This is because, taxes are a factor of production and directly interfere in the choice of the price of the product, being a determining factor. if taxes go up, production becomes more expensive, consequently the price gets higher.

If the price of the video game goes up, the demand for that video game will go down. This is because consumers will look for cheaper options that do not interfere so much in their purchasing power.

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