2771EconomicsMedium
Which of the following takes place when a tax is placed a good?
Aan increase in the price buyers pay a decrease in the price sellers receive and a decrease in the quantity sold
Ba decrease in the price buyers pay, an increase in the price sellers receive and an increase in the quantity sold
Can increase in the price buyers pay a decrease in the price sellers receive, and an increase in the quantity sold
Da decrease in the price buyers pay, an increase in the price sellers receive, and a decrease in the quantity sold
Correct answer
A. an increase in the price buyers pay a decrease in the price sellers receive and a decrease in the quantity sold
Explanation
The correct answer is an increase in the price buyers pay a decrease in the price sellers receive and a decrease in the quantity sold.