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    Question

    Which of the following situations will arrive when a tax

    is imposed on sales of alcohol?
    A The supply curve shifts to the left Correct Answer Incorrect Answer
    B The supply curve shifts to the Right Correct Answer Incorrect Answer
    C The Demand curve shifts to the left Correct Answer Incorrect Answer
    D The Demand curve shifts to the left Correct Answer Incorrect Answer
    E None of the Above Correct Answer Incorrect Answer

    Solution

    The tax imposed is a sales tax, usually imposed at the point of sale. A sales tax is treated like an input cost, so the supply curve shifts left

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