A unit tax of $0.50 has been levied on a good. The equilibrium price of the good will most likely

Name: A unit tax of $0.50 has been levied on a good. The equilibrium price of the good will most likely
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Question

Quizplus · Accepted Answer

The equilibrium price will increase by an amount less than $0.50 because the tax burden is typically shared between buyers and sellers, depending on the relative elasticities of demand and supply.

A Unit Tax of $0