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Suppose that the local Allendale City government decides to institute a tax on peanut butter. Before the tax, 10,000 jars of peanut butter were sold
Suppose that the local Allendale City government decides to institute a tax on peanut butter. Before the tax, 10,000 jars of peanut butter were sold at a price of $8 per jar of peanut butter. After the tax, 5,000 units of peanut butter were sold each week, consumers paid $9 per jar of peanut butter, and producers received $6 for each jar of peanut butter sold. Consumers felt more of the burden of the tax than producers. True False
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