When a tax is imposed on the sellers of a good, the supply curve shifts:.
a) upward by less than the amount of the tax.
b) downward by less than the amount of the tax.
c) downward by the amount of the tax.
d) upward by the amount of the tax.

d. upward by the amount of the tax

Explanation:

Tax is a compulsory levy impose on an individual or businesses by the government. Taxes are means of generating revenue for the government.

When taxes are imposed on the sellers of of a good, the supply curve shifts upward by the amount of the tax. It means that sellers of goods would factor in the tax imposed on them on the goods they are selling which will ultimately be borne by the final consumers.

When taxes are levied on sellers, an upward shift of the supply curve would set in because such levies increases the cost of production which are finally borne by the consumers or buyers.

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