If an Excise Tax Is Imposed on Automobiles and Collected

question 180

Multiple Choice

If an excise tax is imposed on automobiles and collected from consumers,the:

• A)demand curve will shift downward by the amount of the tax.
• B)supply curve will shift upward by the amount of the tax.
• C)equilibrium quantity supplied will increase relative to the pretax level.
• D)equilibrium quantity demanded will increase relative to the pretax level.

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Definitions:

Probability of Success

The likelihood measured as a fraction or percentage, of achieving a desired outcome or positive result in an experiment or trial.

Variance

A measure of how much values in a data set differ from the mean, indicating the distribution's spread.

Normal Distribution

The distribution is symmetric relative to the mean, with a notable prevalence of data points in close proximity to the mean compared to those farther away.

Sample Proportion

The fraction of the sample that exhibits a certain trait or characteristic.