When a Tax Is Levied on the Sellers of a Good,what

question 138

Multiple Choice

When a tax is levied on the sellers of a good,what happens to the supply curve

• A)shifts left (up) by more than the tax
• B)shifts right (down) by more than the tax
• C)shifts left (up) by an amount equal to the tax
• D)shifts right (down) by an amount equal to the tax

---

Definitions:

Long-run Equilibrium

The state in which, over time, supply and demand are balanced, and all adjustments to economic conditions have been made, resulting in stable prices and outputs.

Marginal Cost

The hike in expense for producing another unit of a product or service.

Marginal Revenue

The extra revenue a company earns by selling an additional unit of a product or service.