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What Effect Does a Tax on a Good Have on Prices

Question 60

Multiple Choice

What effect does a tax on a good have on prices


A) It raises the price buyers pay and lowers the price sellers receive.
B) It raises both the price buyers pay and the price sellers receive.
C) It lowers both the price buyers pay and the price sellers receive.
D) It lowers the price buyers pay and raises the price sellers receive.

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