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what would happen to the equilibrium price and quantity for the market for alcohol if the government decreased the tax on producers

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User Zanael
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If the government decreased the tax on producers of alcohol, it would decrease the cost of production for alcohol suppliers. As a result, the suppliers would be willing to supply more alcohol to the market at any given price. This would increase the supply of alcohol, causing a rightward shift in the supply curve. The shift of the supply curve would lead to a new equilibrium in the market with a lower equilibrium price and a higher equilibrium quantity. Therefore, the equilibrium price of alcohol would be lower, and the equilibrium quantity of alcohol would be higher after the decrease in the tax on producers of alcohol
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User Mark Heath
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