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When a Tax Is Levied on Sellers of Tea

Question 3

Multiple Choice

When a tax is levied on sellers of tea,


A) the well-being of both sellers and buyers of tea is unaffected.
B) sellers of tea are made worse off,and the well-being of buyers is unaffected.
C) sellers of tea are made worse off,and buyers of tea are made better off.
D) both sellers and buyers of tea are made worse off.

Correct Answer:

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