In graphical form,the effect of imposing a tax on a good is shown as
A) a leftward shift of the market supply curve.
B) a rightward shift of the market supply curve.
C) a downward movement along the market supply curve.
D) no change to the market supply curve.

Question

Quizplus · Accepted Answer

Imposing a tax on a good increases the cost of producing it, leading to a decrease in the quantity supplied. This is shown graphically as a leftward shift of the market supply curve. The new supply curve reflects the higher cost of production, reducing the quantity supplied at any given price.

In Graphical Form,the Effect of Imposing a Tax on a Good