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If the Demand for a Product Is Perfectly Inelastic and the Supply

Question 280

Multiple Choice

If the demand for a product is perfectly inelastic and the supply curve is upsloping, a $1 excise tax per unit of output will

A) raise the price by less than $1.
B) raise the price by more than $1.
C) raise the price by $1.
D) lower the price by $1.

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