If a tax shifts the supply curve downward (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 supply curve upward (or to the left) because it increases the cost of production for sellers. A downward (or rightward) shift is inconsistent with the effects of a tax.

If a Tax Shifts the Supply Curve Downward (Or to the Right),we