Suppose a Tax Is Levied on the Sellers of a Good;

question 192

Multiple Choice

Suppose a tax is levied on the sellers of a good;

• A)then the supply curve shifts upward by the amount of the tax.
• B)then the quantity demanded decreases for all conceivable prices of the good.
• C)this means that the sellers of the good will receive a lower price from buyers, not that the sellers are actually responsible for paying the tax to the government.
• D)All of the above are correct.

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