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AP Macroeconomics/Unit 1: Basic Economic Concepts
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Tax Decrease Impact on Market Equilibrium
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If there is a decrease in taxes for small businesses, how would this affect the supply of goods produced by small businesses and the market equilibrium price?

A

Supply remains constant, equilibrium price remains constant

B

Supply increases, equilibrium price decreases

C

Supply increases, equilibrium price increases

D

Supply decreases, equilibrium price increases

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