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Yachts are produced by a perfectly competitive industry in Dystopia. Industry output (Q) is currently 30,000 yachts per year. The government, in an attempt to raise revenue, places a $20,000 tax on each yacht. Demand is highly, but not perfectly, elastic. The result of the tax in the long run will be that1. Q falls from 30,000; P rises by less than $20,000.2. Q falls from 30,000; P rises by $20,000.3. Q falls from 30,000; P does not change.4. Q stays at 30,000; P rises by $20,000.
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Yachts are produced by a perfectly competitive industry in Dystopia. Industry output (Q) is currentl...
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