Examlex

Solved

-If the Government Puts a $2 Excise Tax on a Product

question 127

Multiple Choice

  -If the government puts a $2 excise tax on a product and as a result,price rises by $0.75,which of the following statements is correct? A) The sellers pay more of the tax than the buyers. B) The buyers pay more of the tax than the sellers. C) The government's tax revenue falls. D) The quantity demanded of the product falls by 37.5%. E) The quantity demanded of the product rises by 37.5%.
-If the government puts a $2 excise tax on a product and as a result,price rises by $0.75,which of the following statements is correct?


Definitions:

Expected Useful Life

The estimated length of time an asset will be used in normal business operations.

Depreciation Calculation

The process of allocating the cost of a tangible asset over its useful life.

Placed In Service

The point in time when an asset is ready and available for its intended use, often marking the start of depreciation or amortization for accounting purposes.

Depreciable Cost

The total cost of an asset that is subject to depreciation, including purchase price and any additional expenses to bring the asset to its intended use, minus salvage value.

Related Questions