A long-term tax on a product is eliminated. The supply curve should shift upward and to the right, and the price of that product will typically rise.

Name: A long-term tax on a product is eliminated. The supply curve should shift upward and to the right, and the price of that product will typically rise.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Eliminating a tax reduces production costs, causing the supply curve to shift downward and to the right, typically leading to a decrease in the product's price.

A Long-Term Tax on a Product Is Eliminated