Suppose an excise tax is imposed on product X. We would expect this tax to:
A. decrease the demands for both complementary good Y and substitute product Z.
B. increase the demands for both complementary good Y and substitute product Z.
C. increase the demand for complementary good Y and decrease the demand for substitute product Z.
D. decrease the demand for complementary good Y and increase the demand for substitute product Z.
Answer: D
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