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Suppose the market for pizza is characterized by downward slope in demand curve and an upward slope in supply curve. Now suppose an excess tax
Suppose the market for pizza is characterized by downward slope in demand curve and an upward slope in supply curve. Now suppose an excess tax to be collected by pizza sellers is impose on this market. Ceteris paribus, it follows that the consumer surplus will______and producer surplus will__________.
a, increase, increase
b, increase, decrease
c, decrease, increase
d,decrease, decrease
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