Suppose a corn dog stand market is perfectly competitive and in long-run equilibrium. One day, the city starts imposing a $300 per year tax on each stand. How does this policy impact the number of corn dogs produced and sold in the market in the short run and long run? Down in the short run and no change in the long run No change in the short run and down in the long run Up in the short run and no change in the long run No change in the short run and up in the long run
Suppose a corn dog stand market is perfectly competitive and in long-run equilibrium. One day, the city starts imposing a $300 per year tax on each stand. How does this policy impact the number of corn dogs produced and sold in the market in the short run and long run? Down in the short run and no change in the long run No change in the short run and down in the long run Up in the short run and no change in the long run No change in the short run and up in the long run
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Suppose a corn dog stand market is
Down in the short run and no change in the long run
No change in the short run and down in the long run
Up in the short run and no change in the long run
No change in the short run and up in the long run
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Supply refers to the amount of goods that producer willing to and able to produce at particular price.
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