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Diana is a personal trainer whose client Charles pays $80 per hour-long session. Charles values this service at $100 per hour, while the opportunity cost

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Diana is a personal trainer whose client Charles pays $80 per hour-long session. Charles values this service at $100 per hour, while the opportunity cost of Diana's time is 575 per hour. The government places a tax of $10 per hour on personal trainers. After the tax, what is likely to happen in the market for personal training? Diana and Charles will agree to a new price somewhere between $85 and 100, Diana and Charles will agree to a new price somewhere between $70 and $110. Diana will no longer offer personal training services to Charles because she must charge more than 100 in order to cover her opportunity costs and pay the tax The price will remain at $80, and Duna will pay the 510 tax

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