Suppose a tax has been imposed in the graph.Which kind of tax is most likely demonstrated by this graph?

Question

Quizplus · Accepted Answer

The graph shows a shift in the supply curve, which indicates that there is a tax on the sellers. The tax causes the supply curve to shift upwards by the amount of the tax, resulting in a higher equilibrium price and a lower quantity of goods sold. This is consistent with a tax on buyers, as it increases the cost of goods for consumers, but it is more likely a tax on sellers, which is imposed on producers and reduces their profit margin.

Suppose a Tax Has Been Imposed in the Graph