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When the Government Passes a Law Requiring Buyers of a Good

Question 201

Multiple Choice

When the government passes a law requiring buyers of a good to send one dollar to the government for every unit of the good they buy,


A) the supply curve for the good shifts to the right.
B) the demand curve for the good shifts to the left.
C) more than 50 percent of the burden of the tax falls on buyers.
D) the government collects less tax revenue than it would collect if the sellers of the good were required to send one dollar to the government for every unit of the good they sell.

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