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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 2
Problem 2
What is the formula used to adjust the supply equation when a tax is imposed on suppliers?
A
Replace Q with Q + tax
B
Replace P with P - tax
C
Replace P with P + tax
D
Replace Q with Q - tax
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