Within the supply-and-demand model, a tax collected from the sellers of a good shifts the a. supply curve upward by the size of the tax per unit b. demand curve downward by the size of the tax per unit c. supply curve downward by the size of the tax per unit d. demand curve upward by the size of the tax per unit
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When a tax is collected from sellers, it leads to an increase in their costs, thus making them less willing to supply the same amount at existing prices. This results in a shift of the supply curve upward by the size of the tax per unit. The correct answer, therefore, is a. supply curve upward by the size of the tax per unit. In practice, this tax shift can lead to higher prices for consumers and lower prices received by sellers, which can affect market equilibrium. Sellers may decrease their supply, consumers may buy less due to higher prices, and the market will find a new equilibrium reflecting these changes in behavior.