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Consider the market for cheeseburgers where the equilibrium quantity sold is Q at an equilibrium price P. To make people eat healthy and discourage the
Consider the market for cheeseburgers where the equilibrium quantity sold is Q at an equilibrium price P. To make people eat healthy and discourage the purchase of cheeseburgers, the government decides that henceforth all customers will pay a tax of $1 on every cheeseburger they purchase. Will the new equilibrium price be P+ 1? Why or why not? Explain with diagram.
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