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PREVIOUS 4414 49) Figure 8-12 Supply Demand 25 30 35 40 + 43 5 10 15 20 Refer to Figure 8-12. Suppose a S3 per-unit tax is pl
Refer to Figure 8-12. Suppose a $3 per-unit tax is placed on this good. The tax causes the price paid by buyers to decrease b
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Answer #1

Increase by 2

Tax shifts the supply curve leftward by 3 at every level of output where new equilibrium price is 6

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