Which of the following statements about excise taxes is TRUE?
A) The producer will increase the price of the good by the amount of the excise tax.
B) The equilibrium price will increase and the equilibrium quantity will remain unchanged.
C) Both the consumer and producer pay part of the excise tax.
D) Consumers will refuse to pay excise taxes forcing the producers to pay it.
C
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There is excess production of tomatoes in the market. This implies that
A. the current price is above the equilibrium level. B. supply of tomatoes is more than the demand. C. quantity demanded is more than quantity supplied. D. the price will be rising, as a result.
The ________ states that the nominal interest rate equals the real interest rate plus the expected rate of inflation
A) Fisher equation B) Keynesian equation C) Monetarist equation D) Marshall equation
Hyperinflation can be explained by
a. the market for loanable funds. b. the quantity theory of money. c. the velocity theory of money. d. the market for federal funds.
For normal goods, the substitution effect and the income effect work in ________, generating a(n) ________-sloped demand curve.
A. opposite directions; downward B. the same direction; downward C. opposite directions; upward D. the same; upward