The Following Questions Refer to the graph below.
-Which of the following shifts represents the effect of an output tax levied on this good?

Question

The Following Questions Refer to the graph below. 
-Which of the following shifts represents the effect of an output tax levied on this good?

Quizplus · Accepted Answer

An output tax on a good typically increases the cost of production for suppliers, which decreases the quantity supplied at each price point. This is represented by a leftward shift of the supply curve, from S to a new position (like S₁), indicating a decrease in supply due to the tax.

The Following Questions Refer to the Graph Below