Multiple Choice
If the government places a $1.20 tax on each pizza sold,
A) consumers will have to pay $1.20 more for each pizza they buy.
B) the supply curve will shift left by $1.20.
C) the demand curve will shift right by $1.20.
D) both the demand curve and the supply curve will shift by 60 cents each.
Correct Answer:
Verified
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