If the government imposes a tax on buyers as a way of reducing pollution,which curve is affected and how?
A)The supply curve shifts to the right.
B)The supply curve shifts to the left.
C)The demand curve shifts to the right.
D)The demand curve shifts to the left.
E)Neither the demand nor the supply curve is affected but the price will increase.

Question

Quizplus · Accepted Answer

When the government imposes a tax on buyers to reduce pollution, it increases the cost of purchasing the commodity. Consequently, fewer people will be willing to buy this commodity leading to a leftward shift of the demand curve.

If the Government Imposes a Tax on Buyers as a Way