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When a Tax Is Levied on a Good,what Happens to the Market

Question 149

Multiple Choice

When a tax is levied on a good,what happens to the market price and why


A) The market price falls because quantity demanded falls.
B) The market price falls because quantity supplied falls.
C) The market price rises because both quantity demanded and quantity supplied falls.
D) The market price rises because both quantity demanded and quantity supplied rises.

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