If a Tax Shifts the Supply Curve Downward (Or to the Right),we

question 39

Multiple Choice

If a tax shifts the supply curve downward (or to the right) ,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:

Maximizes Profits

The process of achieving the highest possible profit margins by optimizing operational and strategic decisions.

Profit Maximizing

The process or objective of adjusting production and sale levels to achieve the highest possible profit.

Economic Profit

The surplus left after subtracting total costs from total revenue, taking into account both explicit and implicit costs.

Total Revenue

The overall amount of money generated by a business from its sales of goods or services, calculated by multiplying the selling price by the quantity sold.