Hi there, i need help on this question:
Explain how each of the following events will influence the demand or supply of commercially brewed beer, and predict the change in equilibrium price and equilibrium quantity.
- sales tax on beer increases – i would think of the answer should be: this causes the supply curve for beer shifts to the left due to the higher tax. For a given demand curve, this implies that the equilibrium price has increased while the equilibrium quantity has decreased.
Please confirm and advise. Thanks
