If a tax causes the supply curve to shift,we know that the tax is paid out of pocket by

Name: If a tax causes the supply curve to shift,we know that the tax is paid out of pocket by
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Question

Quizplus · Accepted Answer

If a tax causes the supply curve to shift, it means that the cost of production has increased, which results in a decrease in supply. This means that producers bear the burden of the tax as they have to lower their quantity supplied in response to the increased costs. Therefore, the tax is paid out of pocket by producers.

If a Tax Causes the Supply Curve to Shift,we Know