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How would a new excise tax affect the supply curve?

2 Answers

3 votes

It would probably cause the supply curve upwards and shift to the left.

User Jay Sheth
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Answer:

The consequence of the tax is to change the supply curve up by the amount of the tax.

Step-by-step explanation:

Though, excise taxes are too levied as an origin of revenue. The influence of the excise tax is to change the demand curve suffered by generators below by the value of the tax. This generates a residue of the good. Mark that the tax load is not sustained only by the user, still though the tax is levied on the user.

How would a new excise tax affect the supply curve?-example-1
User Jjn
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