Question 1 of 2

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You must read each slide, and complete any questions on the slide, in sequence.

The supply curve for rice is as follows:

Under pressure from nutrition activists, the government decides to tax rice producers with a $5 tax per 100-pound bag. Which of the following best represents the shift that will take place?

The supply curve will shift left as a result of the tax.

The supply curve will shift right as a result of the tax.

The supply curve will not change since only quantity supplied changes.

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After the $5 tax is enacted, at which price will producers sell quantities of 10,000? 15,000? 20,000? Select the table with the correct answers.

After the tax is enacted, the prices charged will rise by $5 per 100-lb bag.

After the tax is enacted, the prices charged will fall by $5 per 100-lb bag.

There would be no change in the prices that producers charge after the tax is enacted.

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