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A Law Is Passed That Requires the Buyers of a Good

Question 116

Multiple Choice

A law is passed that requires the buyers of a good to pay a tax on each unit of the good they buy.The initial effect of the tax is on


A) the supply of the good.
B) the demand for the good.
C) both the supply of the good and the demand for the good.
D) the price of the good.

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