When a Tax Is Imposed on Some Good,what Happens to the Amount

question 49

Multiple Choice

When a tax is imposed on some good,what happens to the amount of the good bought and sold?

• A) It increases.
• B) It decreases.
• C) It decreases,but only if the tax is imposed on producers.
• D) It decreases,but only if the tax is imposed on consumers.
• E) It increases,but only if the tax is imposed on consumers.

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