A sales tax on sellers of a good shifts the demand curve leftward because the tax raises the price that consumers must pay.

Name: A sales tax on sellers of a good shifts the demand curve leftward because the tax raises the price that consumers must pay.
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Question

Quizplus · Accepted Answer

A sales tax on sellers shifts the supply curve leftward, not the demand curve, because it increases the cost of production for sellers, not the price consumers pay directly.

A Sales Tax on Sellers of a Good Shifts the Demand