An ad valorem tax on demanders causes the _____ to shift by a constant _____.

Name: An ad valorem tax on demanders causes the _____ to shift by a constant _____.
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Question

Quizplus · Accepted Answer

An ad valorem tax on demanders will cause the demand curve to shift inward by a constant percentage. This is because the tax will increase the price that consumers have to pay for the good, which will lead to a decrease in the quantity of the good demanded at every price point. Therefore, choice C is the correct answer.

An Ad Valorem Tax on Demanders Causes the _____ to Shift