What happens to the quantity of a good sold when sellers are taxed per unit sold?

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When sellers are taxed per unit sold, it increases the cost of selling the good. This tax effectively shifts the supply curve upward because sellers need to charge a higher price to cover this additional cost. As a result, the equilibrium price in the market rises, leading to a decrease in the quantity demanded by consumers.

In a typical scenario dictated by the law of demand, when the price of a good increases, the quantity demanded decreases. Consequently, as the new equilibrium price is established, it leads to a situation where a smaller quantity of the good is sold compared to what would have been sold without the tax. This is why the correct answer indicates that a smaller quantity of the good is sold following the implementation of a per-unit tax on sellers.