Answer to Question #53243 in Microeconomics for EMMA

Question #53243
A cold summer has reduced the demand for beer; at the same time a tax is placed on alcohol. What can we say about the equilibrium price and quantity of alcohol? A Equilibrium price rises, equilibrium quantity falls B Equilibrium price falls, equilibrium quantity is unknown C We cannot say what will happen to equilibrium prices but know that equilibrium quantity will fall D We cannot say what will happen to equilibrium prices or equilibrium quantity
1
Expert's answer
2015-07-11T00:00:41-0400
A Equilibrium price rises, equilibrium quantity falls

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