Which of the following takes place when a tax is placed on a good? a. An increase in the price buyers pay, a decrease in the price sellers receive, and a decrease in the quantity sold b. An increase in the price buyers pay, a decrease in the price sellers receive, and an increase in the quantity sold c. A decrease in the price buyers pay, an increase in the price sellers receive, and an increase in the quantity sold d. A decrease in the price buyers pay, an increase in the price sellers receive, and a decrease in the quantity sold

The correct answer is: **a. An increase in the price buyers pay, a decrease in the price sellers receive, and a decrease in the quantity sold** **Explanation:** When a tax is imposed on a good, it typically affects both buyers and sellers: 1. **Increase in the Price Buyers Pay:** The tax makes the good more expensive for consumers, leading to an increase in the price they are willing to pay. 2. **Decrease in the Price Sellers Receive:** Sellers receive less for the good after the tax is deducted, effectively lowering the price they receive. 3. **Decrease in the Quantity Sold:** The higher price for buyers and lower effective price for sellers usually result in a lower quantity of the good being bought and sold in the market. **Option a** accurately describes these effects.