If the government imposes a $3 tax in a market, the equilibrium price will rise by $3.

Name: If the government imposes a $3 tax in a market, the equilibrium price will rise by $3.
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Quizplus · Accepted Answer

The actual increase in equilibrium price due to a tax can be less than the tax amount because the tax burden is typically shared between buyers and sellers depending on the elasticities of supply and demand.

If the Government Imposes a $3 Tax in a Market