The government imposes a $2.50 per-unit tax on the production of good X. As a result the
A) supply curve for good X shifts leftward and the price of good X rises.
B) quantity supplied of good X falls and the price of good X rises.
C) demand curve for good X shifts leftward and the price of good X falls.
D) supply curve for good X shifts rightward and the price of good X falls.
E) supply curve for good X shifts leftward and the price of good X falls.
A
Economics
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