Because pollution taxes raise production costs, the ________ curve ________.

Question

Quizplus · Accepted Answer

Pollution taxes increase the cost of production and reduce the profit margin for businesses. This results in a decrease in the supply of the product or service, causing the supply curve to shift to the left. Therefore, the correct choice is B. The other options are incorrect because pollution taxes do not affect the demand curve, and have a direct impact on the cost of production, causing the supply curve to shift.

Because Pollution Taxes Raise Production Costs, the ________ Curve ________

Because Pollution Taxes Raise Production Costs, the Curve