A $3.50 tax per gallon of paint placed on the sellers of paint will shift the supply curve

Name: A $3.50 tax per gallon of paint placed on the sellers of paint will shift the supply curve
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A tax on sellers will increase the cost of producing paint, leading to a decrease in supply. This means that the supply curve will shift upward by the full amount of the tax, which is $3.50 per gallon of paint. Therefore, the correct answer is C) upward by exactly $3.50.

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