A $2,000 tax levied on the maker of SUVs will cause

Name: A $2,000 tax levied on the maker of SUVs will cause
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The tax levied on the makers of SUVs increases their production costs, which shifts the supply curve to the left. The after-tax price received by the seller will be reduced, but this does not cause movement along the supply curve. The tax will not cause a rightward shift of the supply curve, as the cost of production has increased. Therefore, the correct answer is option C.

A $2,000 Tax Levied on the Maker of SUVs Will