Question 1

A tax on sellers

Group of answer choices

Decreases supply

Increases demand

Increases supply

Decreases demand

Question 2

A tax on buyers and a subsidy on suppliers of the same amount

Group of answer choices

Decrease quantity and increase price

None of the above

Decrease price but the effect on quantity is undetermined

Increase quantity and price in the market

Question 3

Given a downward-sloping demand a tax on buyers

Group of answer choices

None of the above

Always decreases the price by strictly more than the amount of the tax

Always decreases the price by strictly less than the amount of the tax

Can decrease the price by strictly more or strictly less than the amount of the tax