A Tax on the Buyers of Cereal Will Increase the Price

question 131

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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