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

question 139

Multiple Choice

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.

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Definitions:

Exponential

Refers to the rapid increase or growth at a constant rate over time.

Positive

A term that can refer to an optimistic outlook, a test result indicating the presence of a substance or condition, or a number greater than zero.

Negative

A term that can denote a quantity less than zero, a pessimistic outlook, or the inversion of a situation or condition.

Strong Relationship

A significant association or correlation between two or more variables where changes in one variable are closely linked to changes in the other(s).