Asked by Mercedez Miller on May 27, 2024
Verified
A tax on sellers and an increase in input prices affect the supply curve in the same way.
Supply Curve
A graphical representation of the relationship between the price of a good and the quantity of the good that suppliers are willing to sell.
- Examine the fiscal consequences of goods taxation from the perspectives of demand and supply.
- Analyze how taxes influence the demand and supply curves.
Verified Answer
GM
Gurwinder MultaniMay 28, 2024
Final Answer :
True
Explanation :
Both a tax on sellers and an increase in input prices raise the costs of production, leading to a decrease in supply, which is represented by a leftward shift of the supply curve.
Learning Objectives
- Examine the fiscal consequences of goods taxation from the perspectives of demand and supply.
- Analyze how taxes influence the demand and supply curves.