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If the fee is per phone it adjusts the supply schedule by moving it towards a lower quantity as a higher consumer price is required to compensate the producers
by wbl 8y ago
If the fee is per phone it adjusts the supply schedule by moving it towards a lower quantity as a higher consumer price is required to compensate the producers at the same amount.
- thaumasiotes 8y agoThe schedule doesn't change. The quantity traded does, but I mentioned that: > When Oracle imposes a fee on phone sales of value F, the price and quantity-traded of phones adjust. The new quantity traded Q_f is lower than Q_e, and the new price P_f is higher than P_e.