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Suppose a 5% tax is placed on the sale of your good or service Describe what happens to the supply curve, demand curve, equilibrium price,

Suppose a 5% tax is placed on the sale of your good or service

  1. Describe what happens to the supply curve, demand curve, equilibrium price, and equilibrium quantity in the market for your good or service.
  2. Identify the type of tax imposed.
  3. Explain possible objectives for why the tax was imposed.

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