If There Was an Increase in the Excise Tax on Beer

question 224

Multiple Choice

If there was an increase in the excise tax on beer, what would be the effect on the equilibrium price and quantity of beer?

• A) price increases, quantity decreases
• B) price decreases, quantity decreases
• C) price increases, quantity increases
• D) price decreases, quantity increases

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Definitions:

Philip Zimbardo

An American psychologist best known for his leading role in the Stanford Prison Experiment, which explored the effects of perceived power and authority on behavior.

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