Use the Following to Answer Question(s): Model of a Competitive

question 44

Multiple Choice

Use the following to answer question(s) : Model of a Competitive Market

-(Exhibit: Model of a Competitive Market) If there are external costs, a tax imposed on sellers will:

• A) decrease the equilibrium quantity.
• B) increase the equilibrium quantity.
• C) have no effect on the equilibrium price.
• D) decrease the equilibrium price.

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