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If Penalties Are Imposed on Both the Buyers and the Sellers

Question 367

Multiple Choice

If penalties are imposed on both the buyers and the sellers of illegal goods or services, then an effect in the market for the illegal good or service would definitely be


A) an increase in the equilibrium price.
B) a decrease in the equilibrium price.
C) a decrease in the equilibrium quantity.
D) an increase in the equilibrium quantity.

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