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Assuming a normal upward-sloping supply curve and a normal downward-sloping demand curve, if the government imposes a $5 excise tax on leather shoes and collects the tax from the suppliers, the price of leather shoes to consumers will:

A. increase by more than $5.
B. increase by $5 increase.
C. increase by less than $5.
D. but we cannot determine by how much.

User Barry MSIH
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1 Answer

3 votes
ANSWER:

The answer is b

Step-by-step explanation:
User Alexander C
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