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    Exam 7: Market Efficiency and Welfare
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    As a Result of a Per-Unit Tax on Output in a Market
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As a Result of a Per-Unit Tax on Output in a Market

Question 24

Question 24

Multiple Choice

As a result of a per-unit tax on output in a market:


A) ​the quantity traded increases.
B) ​the quantity traded does not change.
C) ​the quantity traded decreases.
D) ​a surplus is created at the new equilibrium price.

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