The graph shown demonstrates a tax on sellers. After the tax is in place, buyers experience:

Question

Quizplus · Accepted Answer

When a tax is placed on sellers, the supply curve shifts to the left, resulting in a higher equilibrium price and a lower equilibrium quantity. This decrease in quantity demanded by buyers is represented by a movement along the demand curve, resulting in a decrease in quantity demanded. Therefore, the correct answer is C - a decrease in quantity demanded.

The Graph Shown Demonstrates a Tax on Sellers