Consumers in Nashville purchase fresh tomatoes in the summer. Consumers in Clarksville (nearby) purchase even more tomatoes. Assuming competitive markets, what should happen in Clarksville if Nashville places a tax on Nashville tomato sellers? a. The equilibrium quantity of tomatoes in Clarksville will increase; the equilibrium price will increase. b. The equilibrium quantity of tomatoes in Clarksville will decrease; the equilibrium price will decrease. c. The equilibrium quantity of tomatoes in Clarksville will decrease; the equilibrium price will increase. d. The equilibrium quantity of tomatoes in Clarksville will increase; the equilibrium price will decrease. e. Nothing will likely change in the Clarksville market.
Consumers in Nashville purchase fresh tomatoes in the summer. Consumers in Clarksville (nearby) purchase even more tomatoes. Assuming competitive markets, what should happen in Clarksville if Nashville places a tax on Nashville tomato sellers?
a. The
b. The equilibrium quantity of tomatoes in Clarksville will decrease; the equilibrium price will decrease.
c. The equilibrium quantity of tomatoes in Clarksville will decrease; the equilibrium price will increase.
d. The equilibrium quantity of tomatoes in Clarksville will increase; the equilibrium price will decrease.
e. Nothing will likely change in the Clarksville market.
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