if a tax is imposed on the buyer of a product, the demand curve will shift\na) downward by the amount of the…

if a tax is imposed on the buyer of a product, the demand curve will shift\na) downward by the amount of the tax.\nb) downward by less than the amount of the tax.\nc) upward by the amount of the tax.\nd) upward by more than the amount of the tax.

if a tax is imposed on the buyer of a product, the demand curve will shift\na) downward by the amount of the tax.\nb) downward by less than the amount of the tax.\nc) upward by the amount of the tax.\nd) upward by more than the amount of the tax.

Answer

Brief Explanations:

When a tax is imposed on the buyer, it effectively increases the cost of purchasing the product for them at each quantity level. This makes the product less attractive at the same price points as before, causing the demand curve to shift downward. The shift is by exactly the amount of the tax because the buyer's willingness - to - pay at each quantity is reduced by the tax amount.

Answer:

A. downward by the amount of the tax