Question

Price of yachts $220,000 200,000 180,000 S 160,000 140,000 120,000 100,000 80,000 60,000 40,000 20,000 D 0 2,000 4,000 6,000 8,000 10,000 12,000 Number of yachts Let's assume the government established a $30,000 tax on consumers. If that happens, the O demand downward, 560.000 curve shifts by O Demand downward, 530,000 Supply upward 550.000 supply upward $30,000

Answer 1

Ans. The supply curve shifts upward by $30,000

The increase in government tax of $30,000 on consumers causes the supply curve to shift upward by the amount of the tax.