The sales tax forces companies to increase their productivity; and it also led to the creation of least demanded products.
<h3>What is sales tax?</h3>
The liability of payments towards the sales incurred during any given financial period is known as the sales tax for such period. The rates of sales tax is decided by the financial authorities of the United States.
Increase in the ratio of sales tax leads to decrease in demand and thus productivity has been increased to create demand and maintain the lower prices in the market.
Hence, options A and B hold true regarding the influences of the sales tax.
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