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What is the effect on the supply curve for skateboards if the govenrment implements a tax on the manufacturing process?

User Boson
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Answer:

The correct answer is: the supply curve will move upwards.

Step-by-step explanation:

According to the supply theory if the price of a good or service increases so will the quantity supplied. If the price of the good or service decreases so will the quantity supplied. The theory describes the directly proportional relationship between the price and the quantity supplied of a product.

In that case, if the government sets taxes on the manufacturing process of skateboards, the price of skateboards is likely to increase so will the quantity of skateboards supplied. Then, the supply curve will move upwards.

User Leafmeal
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