(Figure: The Market for Skateboards) Use Figure: The Market for Skateboards. If the government imposes a $60 tax on skateboards and collects it from the consumers, the _____ curve will shift _____ by _____.

Question

Quizplus · Accepted Answer

A tax on consumers will decrease demand, so the demand curve will shift downward by the amount of the tax ($60). The supply curve would not shift in response to a tax on consumers. Therefore, the correct choice is D) demand; downward; $60.

(Figure: the Market for Skateboards) Use Figure: the Market for Skateboards