If a tax is imposed on the buyer of a product,what is the effect on the demand curve
A)It shifts downward by the amount of the tax.
B)It shifts upward by the amount of the tax.
C)It shifts downward by less than the amount of the tax.
D)It shifts upward by more than the amount of the tax.

Question

Quizplus · Accepted Answer

Imposing a tax on the buyer of a product increases the price paid by the buyer, leading to a decrease in quantity demanded. This shift is shown as a downward shift in the demand curve by the amount of the tax. Therefore, choice A is correct.

If a Tax Is Imposed on the Buyer of a Product,what