Ceteris paribus, a tax on the buyers of coffee will be expected to:

Select one:
A. Increase the price of coffee paid by buyers, decrease the net price of coffee received by sellers, and increase the equilibrium quantity of coffee sold.
B. Increase the price of coffee paid by buyers, decrease the net price of coffee received by sellers, and decrease the equilibrium quantity of coffee sold.
C. Increase the price of coffee paid by buyers, increase the net price of coffee received by sellers, and increase the equilibrium quantity of coffee sold.
D. Decrease the price of coffee paid by buyers, increase the net price of coffee received by sellers, and increase the equilibrium quantity of coffee sold.



Answer :

Final answer:

A tax on buyers of a good impacts prices paid by buyers and received by sellers, along with the equilibrium quantity sold.


Explanation:

An important concept to understand in economics is the impact of taxes on buyers and sellers in a market. When a tax is imposed on buyers of a good, it increases the price paid by buyers, decreases the net price received by sellers, and can reduce the equilibrium quantity of the good sold. This change results from the tax burden being shared between buyers and sellers.


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