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Per-Unit Taxes Have Which Effect on the Equilibrium Price of a Good

Question 141

Multiple Choice

Per-unit taxes have which effect on the equilibrium price of a good?


A) They cause demand curves to shift downward, thus lowering price.
B) They cause demand curves to shift downward, thus raising price.
C) They cause supply curves to shift downward, thus lowering price.
D) They cause supply curves to shift upward, thus lowering price.
E) They cause supply curves to shift upward, thus raising price.

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