If the Government Imposes an Excise Tax on a Good

question 83

Multiple Choice

If the government imposes an excise tax on a good equal to $5 per unit and the demand curve for this good is vertical, the supply of this good will shift:

• A) upward and the price will increase by $5.
• B) upward and the price will increase by less than $5.
• C) downward and the price will decrease by $5.
• D) downward and the price will decrease by less than $5.

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Definitions:

ULPA

A high-efficiency air filter standard known as Ultra Low Particulate Air, capable of removing at least 99.99% of dust, pollen, mold, bacteria, and other airborne particles.

Limited Partner

An investor in a partnership who is not involved in daily business operations and whose liability is limited to the amount of their investment.

Withdraw

To remove oneself or something from consideration, participation, or engagement in a particular activity, agreement, or situation.

Managers of the LLC

Individuals or entities appointed or elected to manage the operations of a Limited Liability Company in accordance with its operating agreement.