A $3.50 tax per gallon of paint placed on the sellers of paint will shift the supply curve Group of answer choices downward by exactly $3.50. downward by less than $3.50. upward by less than $3.50. upward by exactly $3.50.

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13-07-2022
Business

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A $3.50 tax per gallon of paint placed on the sellers of paint will shift the supply curve Group of answer choices downward by exactly $3.50. downward by less than $3.50. upward by less than $3.50. upward by exactly $3.50.

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shubhamsinha3013 shubhamsinha3013 · Answer 1 · 2022-07-22T07:25:48+02:00

The answer is upward by exactly $3.50.

The supply curve shifts to the left, the consumer price rises, and the seller's price fall if the government raises the tax on a good.

A tax increase has no impact on the demand curve and has no effect on how elastic supply and demand are.

Given that it is a tax on top of already-imposed levies, this possible tax rise may be referred to be marginal.

Hence, a $3.50 tax per gallon of paint placed on the sellers of paint will shift the supply curve upward or leftward by exactly $3.50.

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