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Suppose a 5% tax is placed on the sale of your Inflatable Business, Describe what happens to the supply curve, demand curve, equilibrium price, and

Suppose a 5% tax is placed on the sale of your Inflatable Business,

  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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