%#3. Suppose that the government was taxing consumers of widgets by $3 per unit. Now it repeals the tax on consumers and replaces it with a $3 per unit tax on producers. What will happen to the price of widgets? a. The price will rise by $3 b. The price will rise, but by less than $3 c. The price will be unchanged d. The price will fall, but by less than $3 e. The price will fall by $3
%#3. Suppose that the government was taxing consumers of widgets by $3 per unit. Now it repeals the tax on consumers and replaces it with a $3 per unit tax on producers. What will happen to the price of widgets? a. The price will rise by $3 b. The price will rise, but by less than $3 c. The price will be unchanged d. The price will fall, but by less than $3 e. The price will fall by $3
Principles of Microeconomics
7th Edition
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter6: Supply, Demand And Government Policies
Section: Chapter Questions
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