Price P S Quantity per period (Figure: Model of a Competitive Market) If there are external costs, a tax imposed on sellers will: Choose one answer. a. decrease the equilibrium quantity. b. have no effect on the equilibrium price. c. decrease the equilibrium price. d. increase the equilibrium quantity.
Price P S Quantity per period (Figure: Model of a Competitive Market) If there are external costs, a tax imposed on sellers will: Choose one answer. a. decrease the equilibrium quantity. b. have no effect on the equilibrium price. c. decrease the equilibrium price. d. increase the equilibrium quantity.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
![Price
P
X
D
S
Q
Quantity per period
(Figure: Model of a Competitive Market) If there are
external costs, a tax imposed on sellers will:
Choose one answer.
a. decrease the equilibrium quantity.
b. have no effect on the equilibrium price.
c. decrease the equilibrium price.
d. increase the equilibrium quantity.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F62e7e6b9-c388-422e-a5a8-a15f8946e2e8%2Fa2355976-ce86-40c5-a878-e48f4f3c9ca9%2Fw05r9dv_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Price
P
X
D
S
Q
Quantity per period
(Figure: Model of a Competitive Market) If there are
external costs, a tax imposed on sellers will:
Choose one answer.
a. decrease the equilibrium quantity.
b. have no effect on the equilibrium price.
c. decrease the equilibrium price.
d. increase the equilibrium quantity.
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