Multiple Choice
(Figure: A Competitive Market in the Presence of Externalities) Use Figure: A Competitive Market in the Presence of Externalities. Given the figure, if a tax is imposed on sellers, the equilibrium price will _____, and the equilibrium quantity will _____.
A) increase; decrease
B) remain the same; increase
C) remain the same; decrease
D) increase; increase
Correct Answer:
Verified
Correct Answer:
Verified
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