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Quantitative Analysis of Taxes
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Problem 9
Quantitative Analysis of Taxes
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6. Introduction to Taxes and Subsidies / Quantitative Analysis of Taxes / Problem 5
Problem 5
If the equilibrium price is \$8 and a \$2 tax is imposed on suppliers, what price do suppliers receive and what price do consumers pay?
A
Suppliers receive \$6, consumers pay \$8
B
Suppliers receive \$5, consumers pay \$7
C
Suppliers receive \$8, consumers pay \$10
D
Suppliers receive \$7, consumers pay \$9
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