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Figure: The Market for Yachts
-(Figure: The Market for Yachts) Look at the figure The Market for Yachts. If the government imposes a $60,000 tax on yachts and collects it from the consumers, the _____ curve will shift _____ by _____.

Question

Use the following to answer questions:
Figure: The Market for Yachts 
-(Figure: The Market for Yachts) Look at the figure The Market for Yachts. If the government imposes a $60,000 tax on yachts and collects it from the consumers, the _____ curve will shift _____ by _____.

Quizplus · Accepted Answer

When a tax is imposed on consumers, it effectively decreases their willingness to pay by the amount of the tax, shifting the demand curve downward by the full amount of the tax, which is $60,000 in this case.

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