What Effect Does a Tax Levied on the Supplier of a Product

question 33

Multiple Choice

What effect does a tax levied on the supplier of a product have

• A)It shifts the supply curve upward (or to the left).
• B)It shifts the supply curve downward (or to the right).
• C)It shifts the demand curve upward (or to the right).
• D)It shifts the demand curve downward (or to the left).

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Definitions:

Inventions

Original creations or discoveries that offer new technical solutions or enhance existing ones.

Innovations

The process of translating an idea or invention into goods or services that create value or for which customers will pay.

Patented

A legal status provided to an inventor or assignee granting exclusive rights to use, make, and sell an invention for a certain period of time.

Marginal Benefit

The increase in satisfaction or utility one gets from the consumption of an additional unit of any good or service.