When the government imposes a specific tax on the sale of a good or service

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    the price the buyer pays must exceed the price the seller received by the amount of the tax.
     the price the buyer pays will be higher than the untaxed market equilibrium price by the amount of the tax.
     the price the seller received will be lower than the untaxed market equilibrium price by the amount of the tax.
     Both 1 and 2.
asked Jun 2, 2013 in Economics by anonymous
    

1 Answer

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the price the buyer pays must exceed the price the seller received by the amount of the tax.
answered Jun 3, 2013 by Xyz ~Expert~ (3,650 points)



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