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How does the imposition of an excise tax on a good affect its market equilibrium?

How does the imposition of an excise tax on a good affect its market equilibrium?
Equilibrium quantity increases, and equilibrium price increases
Equilibrium quantity increases, and equilibrium price decreases.
Equilibrium quantity decreases, and equilibrium price decreases.
Equilibrium quantity decreases, and equilibrium price increases.

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Equilibrium quantity decreases, and... View the full answer

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Equilibrium quantity... View the full answer

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