Suppose the supply for toothpicks is perfectly elastic. After imposing a tax, producer surplus _________ and supplier revenue _________. Group of answer choices stays constant; stays constant decreases; stays constant increases; decreases decreases; decreases stays constant; decreases
Suppose the supply for toothpicks is perfectly elastic. After imposing a tax, producer surplus _________ and supplier revenue _________. Group of answer choices stays constant; stays constant decreases; stays constant increases; decreases decreases; decreases stays constant; decreases
Principles of Economics (MindTap Course List)
8th Edition
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter8: Application: The Cost Of Taxation
Section: Chapter Questions
Problem 4CQQ
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Suppose the supply for toothpicks is perfectly elastic. After imposing a tax, producer surplus _________ and supplier revenue _________. Group of answer choices
stays constant; stays constant
decreases; stays constant
increases; decreases
decreases; decreases
stays constant; decreases
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