"The tax on insulin in the Philippines is anywhere between 10 and 20 percent. If you are rich and living in the Philippines, this is not a problem, but if you are poor, then insulin becomes something that you cannot afford." If the government places the tax on sellers, what is the effect on the supply and demand curves?
A) The demand curve stays the same and the supply curve shifts leftward.
B) The demand curve shifts rightward and the supply curve stays the same.
C) Both the demand and supply curves shift leftward.
D) The demand curve shifts leftward and the supply curve stays the same.

Question

Quizplus · Accepted Answer

When a tax is placed on sellers, it increases their costs, causing the supply curve to shift leftward. The demand curve remains unchanged as the tax does not directly affect consumers' willingness to buy.

"The Tax on Insulin in the Philippines Is Anywhere Between