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Consider a Market for an Illegal Good

Question 114

Multiple Choice

Consider a market for an illegal good.If the government imposes the cost of breaking the law on the buyer of the good,then price will be


A) higher and quantity lower compared to imposing the same cost on the seller.
B) higher and quantity higher compared to imposing the same cost on the seller.
C) lower and quantity lower compared to imposing the same cost on the seller.
D) lower and quantity the same compared to imposing the same cost on the seller.
E) higher and quantity the same compared to imposing the same cost on the seller.

Correct Answer:

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