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Select one: A tax imposed on the supplier of Blu Ray players shifts a
Select one:
A tax imposed on the supplier of Blu Ray players shifts
a. the demand curve for Blu Ray players to the left.
b. the supply curve for Blu Ray players to the left.
c. the demand curve for Blu Ray players to the right.
d. the supply curve for Blu Ray players to the right.
Expert Solution
b. the supply curve for Blu Ray players to the left.
Imposition of tax to the supplier of Blue Ray player will make him to shift part of the tax to the consumer (buyer) of the player by increasing prices. Increase in prices of players makes then expensive, and according to law of demand which states that, when prices of commodity increases, the less of it will be demanded, other factors held constant. This decreases the amount of players supplied. Imposition of tax to the supplier side shift the supply curve upward and to the left.
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