Multiple Choice
If a (large) country B puts an export tax on a good, and assuming that world demand for The export from B is not perfectly inelastic, then, because of the tax, the price of the good In country B will __________ and the price of the good on the world market __________.
A) increase; also will increase
B) increase; will decrease
C) decrease; will increase
D) decrease; also will decrease
Correct Answer:
Verified
Correct Answer:
Verified
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