A specific tax shifts supply curves upward and reduces equilibrium quantity
Is it true that a specific tax shifts supply curves upward and reduces equilibrium quantity?
This claim is a fundamental economic principle regarding market equilibrium and taxation; no citation is needed.
Verdict: COMMON KNOWLEDGE · 0 sources for, 0 against · Last checked
The claim states a basic microeconomic truism derived directly from the standard supply-and-demand model where a unit tax shifts the supply curve vertically by the amount of the tax and establishes a new equilibrium with a lower quantity.
What does the evidence say?
The claim states a basic microeconomic truism derived directly from the standard supply-and-demand model where a unit tax shifts the supply curve vertically by the amount of the tax and establishes a new equilibrium with a lower quantity.
Receipt History
Challenge the receipt
Citation formatting by citeproc-js (Frank Bennett) and the Citation Style Language project. Source and licenses.
Terms · Privacy · How verdicts work