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When a Tax Is Imposed on Some Good,what Happens to the Amount

Question 49

Multiple Choice

When a tax is imposed on some good,what happens to the amount of the good bought and sold?


A) It increases.
B) It decreases.
C) It decreases,but only if the tax is imposed on producers.
D) It decreases,but only if the tax is imposed on consumers.
E) It increases,but only if the tax is imposed on consumers.

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