A places a gap between the price buyers pay and the price sellers receive.

tax

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price ceiling

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price floor

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Solution

The correct option is A tax
A tax places a gap between the price buyers pay and the price sellers receive. This difference is pocketed by the taxing authority, usually, the government.

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Similar questions

Which of the following quality of buyers and sellers leads to uniform price and uniform cost of the product?

At any price higher than the market-clearing price, the quantity that buyers want to buy is less than the quantity that sellers want to sell.

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