A sales tax on sellers of a good shifts the supply curve leftward because the tax is like a cost of production.

Name: A sales tax on sellers of a good shifts the supply curve leftward because the tax is like a cost of production.
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Question

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A sales tax on sellers increases their costs, reducing the quantity they are willing to supply at any given price, thus shifting the supply curve leftward.

A Sales Tax on Sellers of a Good Shifts the Supply