Answered

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Assume a market for a normal good is currently in equilibrium. If the government increases the taxes that firms must pay, then:

Sagot :

Answer:

The supply will decrease.

Explanation:

The supply will decrease because the application of taxes will make selling costly. Thus, when cost increases then producers supply less. Therefore, less quantity will be supplied in the market when tax is imposed and this will increase the prices of products.

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