If a Tax Shifts the Supply Curve Upward (Or to the Left),we

question 161

Multiple Choice

If a tax shifts the supply curve upward (or to the left) ,we can infer that the tax was levied on

• A)buyers of the good.
• B)sellers of the good.
• C)both buyers and sellers of the good.
• D)We cannot infer anything because the shift described is not consistent with a tax.

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Definitions:

Gain or Loss

The financial result from a transaction when the selling price of an asset differs from its book value.

Bonds

Long-term debt securities issued by corporations and governments to raise funds, paying interest to holders.

Effective-Interest Method

An accounting practice used to amortize the discount or premium on bonds payable over the bond’s life, reflecting a constant rate of interest.

Bonds

Long-term debt securities issued by corporations or governments, promising to pay the holder a specified amount of interest over a set period of time before returning the principal amount.