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A Tax on the Buyers of Cereal Will Increase the Price

Question 32

Multiple Choice

A tax on the buyers of cereal will increase the price of cereal paid by buyers,


A) decrease the effective price of cereal received by sellers,and decrease the equilibrium quantity of cereal.
B) decrease the effective price of cereal received by sellers,and increase the equilibrium quantity of cereal.
C) increase the effective price of cereal received by sellers,and decrease the equilibrium quantity of cereal.
D) increase the effective price of cereal received by sellers,and increase the equilibrium quantity of cereal.

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