Multiple Choice
What effect does a tax on buyers of coffee have on the equilibrium price (for buyers) and quantity
A) It reduces the equilibrium price of coffee and increases the equilibrium quantity.
B) It increases the equilibrium price of coffee and reduces the equilibrium quantity.
C) It increases the equilibrium price of coffee and increases the equilibrium quantity.
D) It reduces the equilibrium price of coffee and reduces the equilibrium quantity.
Correct Answer:
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