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The following graph plots the market for coffee In Chicago, where there are always over 1,000 coffee stalls. Suppose the municipal government, In an attempt

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The following graph plots the market for coffee In Chicago, where there are always over 1,000 coffee stalls. Suppose the municipal government, In an attempt to Increase the local tax base, Issues $1,000 vouchers to each household that moves to Chicago. As a result, many new families move Into the city Show the effect of this change on the market for coffee by shifting one or both of the curves on the following graph, holding all else constant. Note: Select and drag one or both of the curves to the desired position. Curves will snap Into position, so If you try to move a curve and it snaps back to Its original position, just drag It a little farther. Supply Demand Supply PRICE (Dollars per cup) Demand QUANTITY (Cups) Increase Now suppose Congress passes a tax cut that Increases the Income residents. decrease If coffee is a normal good, this will cause the demand for coffee to

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