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Consider the graph, which shows the effect of a per-unit tax on a market. Which of the following statements is correct? Sellers can only charge
Consider the graph, which shows the effect of a per-unit tax on a market.
Which of the following statements is correct?
Sellers can only charge a lower price per unit for their product after the tax
Sellers earn the pricewhich is below the original equilibrium price.
The tax lowers the cost of production.
Buyers will pay a lower price per unit for their product after the tax.
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