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If the Government Levies a $1,000 Tax Per Boat on Sellers

Question 1

Multiple Choice

If the government levies a $1,000 tax per boat on sellers of boats,then the price paid by buyers of boats would


A) increase by more than $1,000.
B) increase by exactly $1,000.
C) increase by less than $1,000.
D) decrease by an indeterminate amount.

Correct Answer:

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