HOW DOEAS AN INCREASE IN THE RATE OF EXCISE DUTY SHIFT THE SUPPLY CURVE AND WHY - Economics - Money and Banking

Question

HOW DOEAS AN INCREASE IN THE RATE OF EXCISE DUTY SHIFT THE SUPPLY
CURVE AND WHY

Prince Verma · Accepted Answer

The answer given by karan is correct An increase in excise duty
imposed by the government will result in an increase in the cost of
production of the supplier An increase in cost will result in a
fall in the supply of the product and hence, will shift its supply
curve leftwards