Question

1-

If the government increases the tax on a good then the price paid by buyers will ______________ and the price sellers receive will _________________.

a.

increase; increase

b.

increase; decrease

c.

decrease; increase

d. decrease; decrease

________________________________________________________

2-

It doesn't matter whether a tax is levied on the buyers or sellers of a good because _____________.

	a.	sellers always bear the full burden of the tax
	b.	buyers always bear the full burden of the tax
	c.	buyers and sellers will share the burden of the tax
		d. neither buyers nor sellers will be burdened with the tax. ____________________________________________