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A Tax on the Sellers of Coffee Will Increase the Price

Question 20

Multiple Choice

A tax on the sellers of coffee will increase the price of coffee paid by buyers,


A) increase the effective price of coffee received by sellers,and increase the equilibrium quantity of coffee.
B) increase the effective price of coffee received by sellers,and decrease the equilibrium quantity of coffee.
C) decrease the effective price of coffee received by sellers,and increase the equilibrium quantity of coffee.
D) decrease the effective price of coffee received by sellers,and decrease the equilibrium quantity of coffee.

Correct Answer:

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