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Refer to Scenario 1 0 . 3 . Suppose that a tax of $ 5 per unit of output is imposed on red herring producers.

Refer to Scenario 10.3. Suppose that a tax of $5 per unit of output is imposed on red herring producers. The price of red herring will
A) not change.
B) increase by less than $5.
C) increase by $5.
D) increase by more than $5.
E) decrease.
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