What happens when a tax is imposed on a good?

1. A Option A: A decrease in the price buyers pay, an increase in the price sellers receive, and an increase in the quantity sold
2. B Option B: An increase in the price buyers pay, a decrease in the price sellers receive, and an increase in the quantity sold
3. C Option C: A decrease in the price buyers pay, an increase in the price sellers receive, and a decrease in the quantity sold
4. D Option D: An increase in the price buyers pay, a decrease in the price sellers receive, and a decrease in the quantity sold

Answer checked 11 October 2026 · How we write and check questions