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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 $30,000 tax on yachts and collects it from the yacht suppliers, 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 $30,000 tax on yachts and collects it from the yacht suppliers, the _____ curve will shift _____ by _____.

Quizplus · Accepted Answer

The supply curve will shift upward by the full amount of the tax, $30,000, because the tax is collected from the yacht suppliers, increasing their costs.

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