The incidence of a tax depends on whether the government collects the tax from buyers or sellers.
Indicate whether the statement is true or false
Question 2
Refer to Figure 3-8. The graph in this figure illustrates an initial competitive equilibrium in the market for apples at the intersection of D1 and S1 (point A).
If there is an increase in the wages of apple workers and an increase in the price of oranges, a substitute for apples, the equilibrium could move to which point?
A) none of the points shown B) B
C) C D) E
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