A $2.00 tax placed on the sellers of potting soil,for every bag of potting soil they sell,will shift the supply curve
A)downward by exactly $2.00.
B)downward by less than $2.00.
C)upward by exactly $2.00.
D)upward by less than $2.00.

Question

Quizplus · Accepted Answer

A tax on sellers increases their costs, shifting the supply curve upward by the amount of the tax, which is $2.00 in this case.

A $200 Tax Placed on the Sellers of Potting Soil,for Every