Taxes introduce a gap between the selling price and buying price, which stops the price mechanism from balancing which two economic factors?

Show Answers

marginal costs and marginal benefitsdemand and supplymarginal cost and marginal revenuemarginal cost and average cost

Explanation

Taxes create a discrepancy between the price sellers receive and the price buyers pay, preventing the market from aligning marginal costs with marginal benefits, which is essential for efficient resource allocation.