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2 years ago

Suppose that instead of imposing the per-unit sales tax, the government sets a price ceiling of $7.

1 answer:

5 0

If the government decides to impose a price ceiling of $7, the result would be that<u> 5 million cases</u> would be exchanged.

<h3>Effect of Price Ceilings</h3>

A price ceiling will have no effect on goods supplied if it is not binding. A non-binding price ceiling is one that is above the equilibrium price.

The price ceiling of $7 is above the equilibrium price of $5 which means that it is non-binding.

This means that the units supplied will not change from the equilibrium quantity of 5 million cases.

Find out more on price ceilings at brainly.com/question/1448982.

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Answer:

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Explanation:

Giving the following information:

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3 years ago

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3 years ago

Tan Company acquires a new machine (ten-year property) on January 15, 2017, at a cost of $200,000. Tan also acquires another new

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4 years ago

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