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Answer to Question #326087 in Microeconomics for Salman Adil

Question #326087

The Federal board of revenue imposed a tax lemon soda which needs to be paid by the sellers, what will be the effect in lemon soda market.


1
Expert's answer
2022-04-11T16:54:37-0400

It will increase it price and decrease quantity of sale, because tax leads to moving of supply curve to the left upper side



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