Suppose an Excise Tax of $1 Is Imposed on Every

question 60

Multiple Choice

Suppose an excise tax of $1 is imposed on every case of beer sold and sellers are responsible for paying this tax.How would the imposition of the tax be illustrated in a graph?

• A)The supply curve for cases of beer would shift to the right by $1.
• B)The supply curve for cases of beer would shift to the left by more than $1.
• C)The supply curve for cases of beer would shift to the left by less than $1.
• D)The supply curve for cases of beer would shift to the left by $1.

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Definitions:

Gross Profit

The difference between sales revenue and the cost of goods sold, indicating the efficiency of a company in managing its production and supply chain.

Chief Executive Officer

The highest-ranking executive in a company, responsible for making major corporate decisions, managing overall operations, and resources.

Financial Statements

Financial statements are formal records of the financial activities and position of a business, person, or entity, providing an overview of a financial situation over a specific period.

Physical Existence

The actual, tangible presence of an asset, as opposed to intangible assets or rights.