Question 30
MediumOriginal questionA per-unit tax is imposed on a good. Its supply curve
Show the answer and explanation
CorrectNot quiteAnswer C
Correct answer: C
Explanation
The tax adds to the cost of each unit, so firms need a higher price to offer the same quantity.
That is a leftward (upward) shift: a decrease in supply.
- Concept
- Tax and supply
- Typical timeTypical
- 70 s
- Your timeYours
- —
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