Use the following to answer question:
-(Figure: The Market for SUVs)Use Figure: The Market for SUVs.If the government imposes a $60,000 tax on SUVs and collects it from the consumers,the _____ curve will shift _____ by _____.

Question

Use the following to answer question: 
-(Figure: The Market for SUVs)Use Figure: The Market for SUVs.If the government imposes a $60,000 tax on SUVs and collects it from the consumers,the _____ curve will shift _____ by _____.

Quizplus · Accepted Answer

A tax imposed on consumers for purchasing SUVs would increase the price of the product, leading to a decrease in demand. Thus, the demand curve will shift downward. The tax value is $60,000, which means that it will shift the curve exactly by that amount. Therefore, the best choice is D.

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