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What happens to the market when the government implements a tax? (Hint: think about the effect a tax has on consumer

  1. What happens to the market when the government implements a tax? (Hint: think about the effect a tax has on consumer and producer surplus)
  2. If taxes affect the market like that, then why should we even have taxes? Think about why governments use taxes, in general, and what the tax revenue is used for.
  3. Reply to a classmate

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  6. If your response doesn’t match the questions, then you will receive a score of zero.

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