An Analysis of the Effect of Excise Taxes on Markets

question 218

Essay

An analysis of the effect of excise taxes on markets allows us to conclude that:
A.when the price elasticity of supply is equal to zero, an excise tax falls entirely on the consumers.
B.when the price elasticity of demand is lower than the price elasticity of supply, an excise tax falls mainly on the producers.
C.whether the tax is levied on consumers or producers, the post-tax quantity sold will be the same.
D.when the price elasticity of demand is higher than the price elasticity of supply, an excise tax falls mainly on the consumers.

---

Definitions:

Poles

Long, cylindrical objects typically used to support structures, conduct electricity, or as equipment in various sports and activities.

Echocardiography

A procedure that tests the structure and function of the heart through the use of reflected sound waves, or echoes.

Ultrasound Transducer

A device that converts electrical energy into sound waves and vice versa, used in ultrasound imaging to visualize internal body structures.

Heart Images

Visual representations of the heart, often used in medical settings, such as X-rays, MRIs, or diagrams, to assist in diagnosis or educational purposes.