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Suppose the government decides to impose a 20% tax on goods imported from Mexico. The law requires Mexican producers to pay the tax. Calculate how
Suppose the government decides to impose a 20% tax on goods imported from Mexico. The law requires Mexican producers to pay the tax. Calculate how this tax affects the supply of avocados. (Hint: think about how a 20% tax increases each producer's cost and, therefore, what price each producer requires in order to sell each quantity.)
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