If a tax shifts the demand curve upward (or to the right),we can infer that the tax was levied on
A)buyers of the good.
B)sellers of the good.
C)both buyers and sellers of the good.
D)We cannot infer anything because the shift described is not consistent with a tax.

Question

Quizplus · Accepted Answer

A tax typically shifts the demand curve downward (or to the left) if levied on buyers, or the supply curve upward (or to the left) if levied on sellers. An upward shift in the demand curve is not consistent with the effects of a tax.

If a Tax Shifts the Demand Curve Upward (Or to the Right),we