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.
d
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Refer to Table 20.1. George is a single taxpayer with an income of $65,000. If George earned one extra dollar of income, he would have paid an additional ________ in income tax
A) $0.19 B) $0.2268 C) $0.27 D) $0.38
Which of the arguments Staples and Office Depot made in defense of their proposed merger would be least defensible on economic grounds?
A) There would be substantial economies of scale. B) The two firms were in competition with all other office supply stores, not just office supply superstores. C) The history of low pricing by the two stores meant that they would not raise prices in the future after they merged. D) Entry into the office supply market is relatively easy.