A tax of €1.00 per litre on petrol
A) places a tax wedge of €1.00 between the price the buyers pay and the price the sellers receive.
B) decreases the price the sellers receive by €1.00 per litre.
C) increases the price the buyers pay by €1.00 per litre.
D) increases the price the buyers pay by precisely €0.50 and reduces the price received by sellers by precisely €0.50.
Correct Answer:
Verified
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