If a Tax Shifts the Supply Curve Upward (Or to the Left),we

question 161

Multiple Choice

If a tax shifts the supply curve upward (or to the left) ,we can infer that the tax was levied on

• A)buyers of the good.
• B)sellers of the good.
• C)both buyers and sellers of the good.
• D)We cannot infer anything because the shift described is not consistent with a tax.

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Definitions:

Common Stock

A type of security that represents ownership in a corporation, granting holders voting rights and a share in the company's profitability through dividends and/or capital appreciation.

Fixed Costs

Costs that do not change with the level of production or sales within a short period, such as rent, salaries, and insurance.

Gross Margin Percentage

A profitability metric expressed as a percentage, calculated by subtracting the cost of goods sold from sales revenue and dividing the result by sales revenue.

Net Profit Margin

The percentage of revenue remaining after all operating expenses, interest, taxes, and preferred stock dividends have been deducted from a company's total revenue.