A $0.10 tax levied on the buyers of socks will cause the

Name: A $0.10 tax levied on the buyers of socks will cause the
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The tax is levied on the buyers, which will increase the price they have to pay for socks. This will lead to a decrease in demand as consumers will likely choose to purchase fewer socks at the higher price. Therefore, the demand curve for socks will shift down by $0.10. The supply curve is not affected by the tax as it is imposed on buyers and not suppliers.

A $010 Tax Levied on the Buyers of Socks Will Cause