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Suppose a Tax Is Imposed on a Good

Question 194

Multiple Choice

Suppose a tax is imposed on a good. This will


A) increase the price paid by the buyer and decrease the price received by the seller.
B) increase the price paid by the buyer but leave the price received by the seller unchanged.
C) decrease the price received by the seller but leave the price received by the buyer unchanged.
D) increase the price received by the seller and decrease the price paid by the buyer.

Correct Answer:

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