Refer to the accompanying graph.If a tax is placed on a good and all else is held constant,we would assume that the supply curve would

Question

Quizplus · Accepted Answer

When a tax is placed on a good, the cost of production increases for the suppliers, leading to a decrease in supply. This is shown by a leftward shift in the supply curve. In the graph, the initial supply curve is S₁, and when the tax is imposed, the supply curve shifts leftward to S₂. Therefore, the correct choice is C.

Refer to the Accompanying Graph