The government raises the tax on shirts. The tax is imposed on sellers. As a result, the

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When the government imposes a tax on sellers, the cost of producing or selling the product increases. This makes it less profitable or more costly for sellers to supply the same quantity at the previous price, leading to a decrease in the quantity supplied at every price point. As a result, the supply curve shifts to the left, indicating a decrease in supply.

The Government Raises the Tax on Shirts