The quantity sold in a market will decrease if the government

Name: The quantity sold in a market will decrease if the government
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Increasing a tax on a good sold in a market will increase the price that buyers pay and decrease the quantity sold, resulting in a decrease in market quantity. Decreasing a binding price floor or increasing a binding price ceiling will lead to an increase in market quantity, whereas the question asks about a decrease. Thus, option C is the correct choice.

The Quantity Sold in a Market Will Decrease If the Government