Suppose a tax is levied on the buyers of a good;
A)then the supply curve shifts upward by the amount of the tax.
B)then the quantity supplied decreases for all conceivable prices of the good.
C)this means that the buyers of the good will send tax payments to the government.
D)this means that the buyers of the good will pay a higher effective price for the good, not that they will send tax payments to the government.

Question

Quizplus · Accepted Answer

When a tax is levied on buyers, they are responsible for sending tax payments to the government, which effectively increases the price they pay for the good.

Suppose a Tax Is Levied on the Buyers of a Good;