An Excise Tax on Cigarettes

question 41

Multiple Choice

An excise tax on cigarettes

• A) will cause both the market price and quantity to increase
• B) will cause both the market price and quantity to fall
• C) will cause the market price to rise and the market quantity to fall
• D) will cause the market price to fall and the market quantity to rise
• E) None of the above.

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Definitions:

Carbonate Rock

A rock composed mostly of carbonate minerals, especially calcite and dolomite.

Dolostone

A rock composed mostly of the mineral dolomite.

Limestone

A sedimentary rock composed mainly of calcium carbonate, often formed from the shells of marine life.

Carbonate Rocks

Sedimentary rocks composed primarily of carbonate minerals, such as limestone and dolomite, often formed from the accumulation of marine organisms' shells.