Hailey's Food Inc. sells fish sticks at $3.00 a box. The government passes a law requiring sellers

Hailey's Food Inc. sells fish sticks at $3.00 a box. The government passes a law requiring sellers

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 Hailey's Food Inc. sells fish sticks at $3.00 a box. The government passes a law requiring sellers of food products to pay $0.50 as tax for each product they sell. Hailey's has to pay the government $0.50 for every box of fish sticks it sells. The company decides to trade down to compensate for the tax. Which of the following is a likely outcome of the company’s decision?

The company will increase the price of one box of fish sticks to $3.50 while also increasing the package size.
The company will increase the price and quantity of fish sticks.
The company will continue to sell the same quantity of fish sticks at the same price.
The company will sell fish sticks worth $2.50 at $3.00 per box.
 
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