When a good is taxed:

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Question: When a good is taxed: a. both buyers and sellers of the good are made worse off. b. only …
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a. both buyers and sellers of the good are made worse
off.
b. only buyers are made worse off, because they
ultimately bear the burden of the tax.
c. only sellers are made worse off, because they
ultimately bear the burden of the tax.
d. neither buyers nor sellers are made worse off, since
tax revenue is used to provide goods and services that would
otherwise not be provided in a market economy.

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