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What Would You Expect to Happen to the Demand for a Luxury

Question 84

Multiple Choice

What would you expect to happen to the demand for a luxury good today, if the government announces it will stop taxing that luxury good next year?


A) The demand for the luxury good will shift to the right today.
B) There will be no impact on the demand for the luxury good.
C) Consumers will stop their consumption of the luxury good altogether.
D) The demand for the luxury good will shift to the left today.

Correct Answer:

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