If an Excise Tax Is Imposed on Shirts

question 25

Multiple Choice

If an excise tax is imposed on shirts,

• A) the number of shirts produced will exceed the number demanded
• B) the number of shirts demanded will exceed the number supplied
• C) the equilibrium market price will decrease
• D) the amount consumers pay for each shirt will decrease
• E) the net revenue producers receive from each shirt will decrease

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Definitions:

Internal Document

A type of document used within an organization for communication, record-keeping, or operational purposes, not intended for external distribution.

Voucher

A document that serves as evidence of a transaction and authorizes the payment or receipt of money.

Voucher System

An accounting system that involves preparing and using vouchers—documents that authorize and detail the payment of a liability to a supplier.

Cash Receipts

The total amount of cash and cash equivalents received by a company during a given period, including sales, refunds, and other cash inflows.