Economics: Principles, Problems, and Policies, 19th Edition

Published by McGraw-Hill Education
ISBN 10: 0073511447
ISBN 13: 978-0-07351-144-3

Chapter 3 - Demand, Supply, and Market Equilibrium - Questions - Page 66: 6f

Answer

The supply of auto-tires will decrease and shift left.

Work Step by Step

By implementing a per excise tax on tires, the supply of the tires will have to shift left and decrease because the price for the consumers will be higher so the supply needed will be lower causing the supply curve to decrease.
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