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The Demand Curve for Pizza Is Downward Sloping and the Supply

Question 3

Multiple Choice

The demand curve for pizza is downward sloping and the supply curve is upward sloping. If the government imposes a $2 tax on a pizza, ________ the tax.


A) only producers pay
B) the government pays
C) both producers and consumers pay part of
D) only consumers pay
E) neither producers nor consumers pay part of

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