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Effects of Taxes on a Market
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Effects of Taxes on a Market
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6. Introduction to Taxes / Effects of Taxes on a Market / Problem 7
Problem 7
What is the effect of a tax on market equilibrium?
A
It maintains market equilibrium.
B
It causes the market to deviate from equilibrium, leading to different prices for buyers and sellers.
C
It causes prices to remain constant.
D
It eliminates the need for equilibrium.
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