A tax imposed on the sellers of a good will:

• A. have no effect on the market price of the good
• B. shift the demand curve downward (or to the left) by the amount of the tax
• C. shift the supply curve upward (or to the left) by the amount of the tax
• D. increase the equilibrium quantity of the good

Answer: (C)

Verified step by step guidance

1. Understand that a tax imposed on sellers increases their cost of selling the good, which affects the supply side of the market.
2. Recall that the supply curve represents the relationship between price and quantity supplied; an increase in sellers' costs shifts the supply curve.
3. Recognize that a tax on sellers shifts the supply curve upward (or to the left) by the amount of the tax because sellers require a higher price to supply the same quantity.
4. Note that the demand curve remains unchanged because the tax is not directly imposed on buyers, so their willingness to pay does not shift.
5. Conclude that the new equilibrium will be at a higher price paid by buyers and a lower quantity sold, reflecting the upward shift of the supply curve due to the tax.