When a government imposes penalties on both sellers and buyers of an illegal good, the price of the good ________ and the quantity ________.
A) falls; decreases
B) falls; might increase, decrease, or not change
C) rises; might increase, decrease, or not change
D) might rise, fall, or not change; decreases
Correct Answer:
Verified
Q290: If penalties are imposed on both the
Q291: If penalties for trading illegal drugs are
Q292: If the penalty on sellers of an
Q293: If penalties are imposed only on the
Q294: In general, a fine on buying a
Q296: If enforcement is aimed at buyers of
Q297: If enforcement is aimed at sellers of
Q298: Outlawing the sale of a good shifts
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