A tax creates a tax wedge between a buyer and a seller. This causes the price paid by the buyer to rise, the price received by the seller to fall, and the quantity sold to fall.
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Q8: A €10 tax on football boots will
Q9: A price ceiling that is not a
Q10: The ultimate burden of a tax falls
Q11: Which side of the market is more
Q12: If the equilibrium price of petrol is
Q14: A tax collected from buyers has an
Q15: A 10 per cent increase in the
Q16: A price floor
A) always determines the price
Q17: A binding price ceiling creates
A) a shortage
Q18: A price ceiling set below the equilibrium
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