Whether an Excise Tax Is Imposed on a Demander or Supplier

question 46

Multiple Choice

Whether an excise tax is imposed on a demander or supplier is irrelevant because

• A) in either case the price that the demander has to pay will decrease;while the price the supplier receives will increase
• B) in either case the price that the demander has to pay will increase;while the price the supplier receives will decrease
• C) either situation will create excess demand
• D) either situation will create excess supply
• E) none of these are correct

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Definitions:

Hormones

Chemical messengers produced by glands in the body, transported by the bloodstream, to regulate physiology and behavior.

Posterior Pituitary

A part of the brain that releases hormones produced in the hypothalamus, including oxytocin and vasopressin.

Neurohormones

Chemical messengers that are produced by neurons and transported by the bloodstream to target distant organs.

Antidiuretic Hormone

A hormone secreted by the pituitary gland that regulates the body's water balance by increasing water absorption in the kidneys.