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Suppose demand is linear and downward-sloping, but not perfectly inelastic, and suppose that supply is perfectly inelastic. Initially, the price is $10. A tax of
Suppose demand is linear and downward-sloping, but not perfectly inelastic, and suppose that supply is perfectly inelastic. Initially, the price is $10. A tax of $1 per unit is placed on buyers. What is the pre-tax price charged by suppliers?
A) $9
B) $10
C) $11
D) $20
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