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Does a Tax on Buyers Affect the Supply Curve

Question 135

Multiple Choice

Does a tax on buyers affect the supply curve?


A) Yes; the supply curve shifts to the left by the amount of the tax.
B) Yes; the supply curve shifts to the right by the amount of the tax.
C) Yes; the supply curve shifts up by the amount of the tax.
D) No; the supply curve does not move, as there is a change in the quantity supplied instead.

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