A tax on producers would cause the ________ curve(s)to shift to the ________.

Question

Quizplus · Accepted Answer

A tax on producers increases the cost of production, which reduces the profitability of producing and selling goods. This causes a decrease in the quantity of supply offered at every price level. As a result, the supply curve shifts to the left. The demand curve remains the same, assuming that the demand for the product is relatively inelastic in the short run. Therefore, the correct answer is C: supply; left.

A Tax on Producers Would Cause the ________ Curve(s)to Shift