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Question
The government imposes a tax on each plastic bag sold such that the producer of the plastic bags must pay the tax to the government. In the market for plastic bags, the
a. supply curve shifts to the left.
b. supply curve shifts to the right.
c. demand curve shifts to the left.
d. demand curve shifts to the right.
e. the supply curve and the demand curve shift to the left.
Answer
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Related questions
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What is the long-run consequence of a price ceiling law?
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Q:
Suppose Solomon lives in a community with no price controls. What do you expect will happen if his town borders a community where there is a binding price ceiling on most products?
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Q:
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Q:
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