The government imposes a $2.50 per-unit tax on the production of good X.As a result the

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When a government imposes a per-unit tax on the production of a good, the cost of producing that good increases. This results in a leftward shift of the supply curve, indicating a decrease in supply at every price level. As a result, the equilibrium price of the good rises because the reduced supply leads to higher prices for consumers.

The Government Imposes a $2