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Bess [88]
3 years ago
8

When a tax is levied on the buyers of a good, the A. buyers of the good will send tax payments to the government. B. supply curv

e shifts upward by the amount of the tax. C. quantity supplied increases for all conceivable prices of the good. D. demand curve shifts to the right by the horizontal distance of the tax.
Business
1 answer:
makkiz [27]3 years ago
8 0

Answer:

When a tax is levied on the buyers of a good, the <u>demand curve shifts downward (or to the left). The quantity demanded will decrease at every price level.</u>

Explanation:

When a tax is levied on the sellers of a good, the supply curve shifts to the left, reducing the quantity supplied at every price level.

When a tax is levied on a good, the buyers and sellers of the good share the burden,  regardless of how the tax is levied since it increases the price that buyers effectively pay and decreases the price that sellers effectively receive. Taxes decrease the equilibrium quantity of the good.

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