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A Tax Is Imposed on the Sale of a Product

Question 149

Multiple Choice

A tax is imposed on the sale of a product. As long as neither the supply nor the demand is perfectly elastic or inelastic


A) there is no change in the price paid by the consumers.
B) the price paid by the consumers increases by the full amount of the tax.
C) the price paid by the consumers increases by less than the amount of the tax.
D) the price paid by the consumers increases by more than the amount of the tax.

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