If a tax shifts the supply curve upward (or to the left),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

When a tax is levied on a good, the cost of production for sellers increases, causing the supply curve to shift upward or to the left. Therefore, the tax is levied on the sellers of the good.

If a Tax Shifts the Supply Curve Upward (Or to the Left),we