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Suppose the market for pizza is characterized by the downward sloping demand curve and an upward sloping supply curve. Further suppose there is an exercise
Suppose the market for pizza is characterized by the downward sloping demand curve and an upward sloping supply curve. Further suppose there is an exercise tax in this market and it is collected by Peter Sellers. Ceteris paribus, if the government removes the tax on pizza then the price paid by buyers will__________ while the net price received by sellers will________.
a, increase, increase
b, increase, decrease
c, decrease, increase
d,decrease, decrease
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