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    Principles of Microeconomics
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    Exam 8: Application: the Costs of Taxation
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    What Does a Tax Placed on a Good Do
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What Does a Tax Placed on a Good Do

Question 12

Question 12

Multiple Choice

What does a tax placed on a good do


A) It causes the price of the good to fall.
B) It affects buyers of the good, but not sellers.
C) It causes the size of the market for the good to shrink.
D) It affects sellers of the good, but not buyers.

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