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Introducing Taxes and Tax Incidence
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Introducing Taxes and Tax Incidence
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6. Introduction to Taxes and Subsidies / Introducing Taxes and Tax Incidence / Problem 2
Problem 2
In a graph showing a \$2 tax on buyers, what happens to the demand curve?
A
The supply curve shifts to the right by \$2.
B
The demand curve shifts to the left by \$2.
C
The demand curve shifts to the right by \$2.
D
The supply curve shifts to the left by \$2.
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