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Refer to the Provided Supply and Demand Graph of Product

Question 167

Multiple Choice

Refer to the provided supply and demand graph of Product X. What would happen if the government taxed the producers of this product because it has negative externalities in production? A) supply would increase B) demand would decrease C) supply would decrease D) price would decrease Refer to the provided supply and demand graph of Product X. What would happen if the government taxed the producers of this product because it has negative externalities in production?


A) supply would increase
B) demand would decrease
C) supply would decrease
D) price would decrease

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