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.
Correct Answer:

Verified
Correct Answer:
Verified
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