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The Burden of a Tax on a Good Is Said

Question 7

Multiple Choice

The burden of a tax on a good is said to fall completely on the consumers if the:


A) price paid by consumers for the good declines by the amount of the tax.
B) price paid by consumers for the good increases by the amount of the tax.
C) price paid by consumers does not change.
D) wages received by workers who produce the good increase by the amount of the tax.

Correct Answer:

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