Final answer:
A tax on the production of good X increases the cost of production leading to a leftward shift in the supply curve for good X.
Step-by-step explanation:
If a tax is placed on the production of good X, this will shift the supply curve for X to the left. This is because the tax increases the costs of production for the firm manufacturing good X, causing the firm to supply a smaller quantity at any given price.
Consequently, we can expect the supply curve to shift to the left due to the tax imposition on production, aligning with choice C. This change is reflective of an upward and leftward shift of the marginal cost curve, leading the perfectly competitive firm to produce less at any given market price.
A tax placed on the production of good X will shift the supply curve for X to the left.
When a tax is imposed on producers, it increases their costs of production, leading to a decrease in the quantity supplied at each price level. This results in a leftward shift of the supply curve.