Does a Tax on Buyers Affect the Demand Curve

question 77

Multiple Choice

Does a tax on buyers affect the demand curve?

• A) Yes; the demand curve shifts down by the amount of the tax.
• B) Yes; the demand curve shifts to the left by the amount of the tax.
• C) Yes; the demand curve shifts up by the amount of the tax.
• D) No; the demand curve does not move, as there is a change in the quantity demanded instead.

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Definitions:

New Mexico

A southwestern state in the United States, known for its diverse culture, historic sites, and landscapes, encompassing deserts, forests, and mountains.

Indian City

A city located in the country of India, or in historical contexts, a settlement in regions inhabited by Indigenous peoples in the Americas.

Northwest Passage

A sea route connecting the Atlantic and Pacific Oceans through the Arctic Ocean, sought by explorers for centuries as a potential trade route.

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