When the government places a tax on a good and all else is held constant, which...

When the government places a tax on a good and all else is held constant, which of the following would most likely happen?
   The price the buyer pays for the good decreases, assuming the good does not have a horizontal demand curve.
   The price and quantity adjust back to the competitive market equilibrium point.
   The overall consumption of the good decreases, assuming the good does not have a vertical demand curve.
   The supply curve shifts to the right.
   The government receives no tax revenue if the tax is more than 20%.

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Rahul Sunny answered 2 years ago

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When the government places a tax on a good and all else is held constant, which...

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