**Question:***Ceteris paribus*, if the government imposes a tax on a good, then the price paid by buyers will ______; while the (net) price received by sellers will ______.**Select one:**- a. increase; increase- b. increase; decrease- c. decrease; increase- d. decrease; decrease**Explanation:**In economics, when a tax is levied on a good, the price buyers pay generally increases, whereas the net price sellers receive decreases due to the tax burden. This alteration in prices reflects the market's adjustment to the imposition of the tax, considering the respective demand and supply elasticities.

Equilibrium is achieved where quantity supplied equals quantity demanded.

Ceteris paribus, if the government imposes a tax on a good, then the price paid by buyers will received by sellers will ; while the (net) price Select one: O a. increase; increase Ob. increase; decrease. O c. decrease; increase.

Ceteris paribus, if the government imposes a tax on a good, then the price paid by buyers will received by sellers will ; while the (net) price Select one: O a. increase; increase Ob. increase; decrease. O c. decrease; increase.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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