The government imposes a specific indirect tax of ＄1 on each unit of a good sold.
How does the imposition of the tax shift the demand or supply curve of the good?
1 )
The demand curve of the good will shift vertically downwards by ＄1.
2 )
The demand curve of the good will shift vertically upwards by ＄1.
3 )
The supply curve of the good will shift vertically downwards by ＄1.
The supply curve of the good will shift vertically upwards by ＄1.
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