As Long as the Supply Curve for a Good Is

question 130

Multiple Choice

As long as the supply curve for a good is upward- sloping and the demand curve is downward- sloping, a tax imposed on sellers shifts the supply curve

• A) rightward and definitely decreases the equilibrium quantity.
• B) leftward and definitely raises the equilibrium price.
• C) rightward and possibly increases the equilibrium quantity.
• D) leftward and possibly raises the equilibrium price.

---

Definitions:

Price Elasticity

A measure capturing how demand for a product reacts to adjustments in price.

Linear Demand

A demand relationship shown through a straight line on a graph, indicating a constant relationship between price and quantity demanded.

Demand Schedule

A table that shows the quantity of a good or service that consumers are willing to buy at each price point.

Total Revenue

The total amount of money generated by a business from the sale of its goods or services before any costs or expenses are subtracted.