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In the market for fertilizer, the equilibrium price is $4 per pound, and the equilibrium quantity is 500. At that point, the price elasticity of demand is 2.3, and the price elasticity of supply is 3.4. If a $1 excise tax is imposed in this market, which of the following would you expect to see?
a. The price consumers pay for fertilizer will rise to $5.
b. The consumers will bear more of the burden of the tax than suppliers.
c. The government will make $500 in tax revenue.
d. All of the above
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