Q
Which of the following takes place when a tax is placed a good ?
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A
A. A decrease in the price buyers pay, an increase in the price sellers receive, and a decrease in the quantity sold
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B
B. An increase in the price buyers pay a decrease in the price sellers receive, and an increase in the quantity sold
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C
C. A decrease in the price buyers pay, an increase in the price sellers receive and an increase in the quantity sold
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D
D. An increase in the price buyers pay a decrease in the price sellers receive and a decrease in the quantity sold
Correct Answer:
D. D. An increase in the price buyers pay a decrease in the price sellers receive and a decrease in the quantity sold
