Multiple Choice
Given the supply and demand curves shown in the figure below, a $1 tax on sales should be expected to cause:
A) price to increase by $1 with quantity unchanged.
B) quantity to fall with price left unchanged.
C) no change in either price or quantity.
D) price to rise and quantity to fall.
E) quantity to increase with price left unchanged.
Correct Answer:

Verified
Correct Answer:
Verified
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