CIMA Exam CIMAPRA17-BA1-1 Topic 1 Question 68 Discussion

Actual exam question for CIMA's CIMAPRA17-BA1-1 exam

Question #: 68
Topic #: 1

[All CIMAPRA17-BA1-1 Questions]

When a tax is imposed upon a commodity which the producers must pay to the government, this will cause the commodities?

ASupply curve to shift to the right

BDemand curve to shift to the right

CDemand curve to shift to the left

DSupply curve to shift to the left

Show Suggested Answer

Suggested Answer: B

by Loreta at Mar 30, 2023, 04:15 PM

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Tamekia

5 days ago

Aha, I remember this from my economics class! The tax increases the cost of production, so the supply curve shifts to the left. Easy peasy!

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This seems like a straightforward application of the basic principles of supply and demand. The supply curve should shift to the left, as the producers have to pay a tax, reducing their willingness to supply the commodity.

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Yvette

13 days ago

But wouldn't producers reduce supply if they have to pay more taxes, causing the supply curve to shift to the left?

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Stacey

14 days ago

I disagree, I believe the answer is D) Supply curve to shift to the left.

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Yvette

26 days ago

I think the answer is C) Demand curve to shift to the left.

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CIMA Exam CIMAPRA17-BA1-1 Topic 1 Question 68 Discussion

Contribute your Thoughts:

Tamekia

Sharen

Yvette

Stacey

Yvette