A $1 tax per unit on producers will cause   Question 3 options:   None of the other answers are correct   A price increase which is less than $1 always   A shortage to develop in the market   A price increase which is less than $1 (unless demand is completely inelastic)

MACROECONOMICS FOR TODAY
10th Edition
ISBN:9781337613057
Author:Tucker
Publisher:Tucker
Chapter3: Market Demand And Supply
Section3.A: Consumer Surplus, Proudcer Suplus, And Market Efficency
Problem 18SQ
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A $1 tax per unit on producers will cause

 

Question 3 options:

 

None of the other answers are correct

 

A price increase which is less than $1 always

 

A shortage to develop in the market

 

A price increase which is less than $1 (unless demand is completely inelastic)

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