What effect does a tax levied on the supplier of a product have
A)It shifts the supply curve upward (or to the left).
B)It shifts the supply curve downward (or to the right).
C)It shifts the demand curve upward (or to the right).
D)It shifts the demand curve downward (or to the left).

Question

Quizplus · Accepted Answer

A tax on suppliers increases their costs, causing the supply curve to shift upward or to the left, indicating a decrease in supply at each price level.

What Effect Does a Tax Levied on the Supplier of a Product