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When a Tax Is Imposed on the Sellers of a Good

Question 3

Multiple Choice

When a tax is imposed on the sellers of a good,


A) the demand curve shifts downward by less than the amount of the tax.
B) the demand curve shifts downward by the amount of the tax.
C) the supply curve shifts upward by less than the amount of the tax.
D) the supply curve shifts upward by the amount of the tax.

Correct Answer:

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