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Quantitative Analysis of Taxes
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Quantitative Analysis of Taxes
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6. Introduction to Taxes and Subsidies / Quantitative Analysis of Taxes / Problem 1
Problem 1
Given the supply equation Qs = 4P - 12, how would you adjust this equation if a \$2 tax is imposed on suppliers?
A
Qs = 4P - 10
B
Qs = 4(P + 2) - 12
C
Qs = 4P - 14
D
Qs = 4(P - 2) - 12
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