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Does a Tax on Buyers Affect the Demand Curve

Question 129

Multiple Choice

Does a tax on buyers affect the demand curve?


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

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