Question

When a tax is levied on sellers of tea,

a. sellers of tea are made worse off, and buyers of tea are made better off.
b. both sellers and buyers of tea are made worse off.
c. the well-being of both sellers and buyers of tea is unaffected.
d. sellers of tea are made worse off, and the well-being of buyers is unaffected?

Answer 1

Hello,

This is A. sellers of tea are made worse off, and buyers of tea are made better off.