The Graph Shown Demonstrates a Tax on Buyers

question 95

Multiple Choice

The graph shown demonstrates a tax on buyers.Which of the following can be said about the effect of this tax?

• A) The tax creates a shortage, and rationing must occur.
• B) The tax creates a surplus, and the government must buy the excess.
• C) The tax creates a shortage, and the government must regulate the market.
• D) None of these is true.

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