Asked by Maram Abdeljaber on Jun 30, 2024
Verified
A tax on buyers shifts the demand curve to the right.
Demand Curve
A graph showing the relationship between the price of a good and the quantity demanded by consumers, typically downward sloping to the right indicating an inverse relationship.
Tax on Buyers
A financial charge imposed directly on consumers, which tends to shift the demand curve downward, reflecting a decrease in the quantity demanded at each price.
- Gain insight into the ways in which taxes affect the behavior of buyers and sellers within a marketplace.
Verified Answer
ZK
Zybrea KnightJul 06, 2024
Final Answer :
False
Explanation :
A tax on buyers decreases their willingness or ability to pay for goods, which shifts the demand curve to the left, not to the right.
Learning Objectives
- Gain insight into the ways in which taxes affect the behavior of buyers and sellers within a marketplace.