If buyers of a product are required to pay a tax,the demand curve for the product will shift downward by exactly the size of the tax.

Name: If buyers of a product are required to pay a tax,the demand curve for the product will shift downward by exactly the size of the tax.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

When buyers have to pay a tax, the price of the product increases, which means the quantity demanded of the product decreases. This shift in the demand curve is equal to the size of the tax. Therefore, the statement is true.

If Buyers of a Product Are Required to Pay a Tax,the