Question: Good X is produced in a competitive market using input A . Explain what would happen to the supply of good X in each of
Good X is produced in a competitive market using input A Explain what would happen to the supply of good X in each of the following situations:
a The price of input Aincreases
multiple choice
It will decrease.
It will not change.
It will increase.
b An excise tax of $ is imposed on good X
multiple choice
It will not change.
It will decrease.
It will increase.
c An ad valorem tax of percent is imposed on good X
multiple choice
It will not change.
It will decrease.
It will increase.
d A technological change reduces the cost of producing additional units of good X
multiple choice
It will decrease.
It will increase.
It will not change.
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