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JOANN HARRIS
on Nov 17, 2024

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A tax placed on buyers of shirts shifts the

A) demand curve for shirts downward, decreasing the price received by sellers and causing the quantity to increase.
B) supply curve for shirts upward, decreasing the effective price paid by buyers and causing the quantity to increase.
C) supply curve for shirts upward, increasing the effective price paid by buyers and causing the quantity to decrease.
D) demand curve for shirts downward, decreasing the price received by sellers and causing the quantity to decrease.

Supply Curve

A graphical representation showing the relationship between the price of a good or service and the quantity of that good or service that a supplier is willing and able to provide, holding other factors constant.

Demand Curve

A curve that illustrates the quantity of a product that consumers are willing and able to purchase at various prices, showing the inverse relationship between price and quantity demanded.

Levied

Imposed or collected, usually referring to taxes, duties, or other charges by an authority.

  • Grasp the influence that taxes have on both consumers and sellers in the market.
  • Ascertain the effect tax policies have on the movement of supply and demand curves.
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Isabella ArizmendiNov 17, 2024
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