If a tax is levied on the seller of a product the demand curvea.will not change.b.will shift downward.c.may shift up or down, depending on the amount of the tax.d.will shift upward.

When an excise tax is imposed on buyers, this will cause the ________ curve to shift __________.1 pointsupply; up and to the left.demand; rightward.supply; down and to the right.demand; leftward.

Suppose the demand curve for a product is vertical and the supply curve is upward sloping. If a unit tax is imposed in the market for this product,

If a consumer’s income increases: Group of answer choicesThere will be a change in demand.There will be a movement along the demand curve.There will be an increase in the quantity demanded, but the demand curve will not shift.b and c.None of the above.

Use the following graph for a competitive market to answer the question below.  Assume the government imposes a $3 tax on buyers, which results in a shift of the demand curve from D1 to D2. The price the consumer pays for the product after the tax is imposed on the buyer isMultiple Choice$8.$7.$5.$4.

Assume that demand is perfectly elastic and supply is upward sloping. If a specific tax is imposed on sellers then following the imposition of the tax:Group of answer choicesProducer surplus is equal to zero.Consumer surplus is equal to zero.The total price paid by buyers will increase.The price received and kept by sellers remains unchanged.b, c and d are correct.