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What happens to the total surplus in a market when the government imposes a tax?.

Sagot :

Total surplus decreases in a market when the government imposes a tax.

What is tax?

Tax is a compulsory levy, impose on an individual or institutions by the government of a country.

When the government levies tax on the goods produced, producers will pass some of these costs on as an increased price. This means that consumers will ultimately decrease quantity demanded and reduce producer surplus.

Learn more about taxes here : https://brainly.com/question/1133253

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