-Graphically,what is the effect of imposing an excise tax on a product?
A)It will shift both the supply and the demand curve for the product to the left.
B)It will shift the supply curve for the product to the left.
C)It will shift the supply curve for the product to the right.
D)It will shift both the supply and the demand curve for the product to the right.
E)It will shift the supply curve for the product to the left and the demand curve to the right.

Question

-Graphically,what is the effect of imposing an excise tax on a product?
A)It will shift both the supply and the demand curve for the product to the left. 
B)It will shift the supply curve for the product to the left. 
C)It will shift the supply curve for the product to the right. 
D)It will shift both the supply and the demand curve for the product to the right. 
E)It will shift the supply curve for the product to the left and the demand curve to the right.

Quizplus · Accepted Answer

Imposing an excise tax on a product increases the cost of producing or selling that product, which effectively decreases the quantity supplied at any given price. This is represented graphically by a leftward shift of the supply curve. The demand curve remains unchanged because the tax directly affects the producers' costs, not the consumers' preferences or willingness to pay.

-Graphically,what Is the Effect of Imposing an Excise Tax on a Product