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Business, 22.04.2020 01:59 thajaalalqo

The local government removes a tax on the production of beer in Riverside in an effort to stimulate the economy. At the same time, UC Riverside students (beer consumers) return from Spring Break ready to party in the new quarter. Given these two effects, what can we say about the equilibrium price and quantity of beer in Riverside?
a. Equilibrium price will decrease, equilibrium quantity will increase.
b. Equilibrium quantity will decrease; the effect on price is ambiguous.
c. Equilibrium price will increase; the effect on quantity is ambiguous.
d. Eaulibaum ammtitv will increase: the effect on orice is ambiguous.

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