A tax levied on the buyers of a product shifts the demand curve downward or to the left.

Name: A tax levied on the buyers of a product shifts the demand curve downward or to the left.
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Question

Quizplus · Accepted Answer

When a tax is levied on buyers, the cost of the product increases for the buyer, reducing their willingness to pay for it. This reduces the demand for the product, causing the demand curve to shift downward or to the left.

A Tax Levied on the Buyers of a Product Shifts