If a Tax Is Levied on the Buyers of a Product,then

question 106

Multiple Choice

If a tax is levied on the buyers of a product,then there will be a(n)

• A)downward shift of the supply curve.
• B)upward shift of the supply curve.
• C)movement up and to the right along the supply curve.
• D)movement down and to the left along the supply curve.

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Definitions:

Output

The quantity of goods or services produced by a firm or industry within a certain period of time.

Inputs

Resources used in the production process to create goods and services, including labor, capital, materials, and energy.

Output

The quantity of goods or services produced by a company, industry, or economy within a specified time period.

Constant Returns to Scale

A situation in production where increasing all inputs by a certain proportion results in output increasing by that same proportion.