The Imposition of a Unit Excise Tax on Beer Will

question 74

Multiple Choice

The imposition of a unit excise tax on beer will

• A)lower equilibrium price and quantity in the market.
• B)increase equilibrium quantity and price in the market.
• C)lower equilibrium quantity and raise equilibrium price in the market.
• D)raise equilibrium quantity and lower equilibrium price in the market.

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Definitions:

Japan

A country in East Asia known for its significant contributions to technology, culture, and the global economy.

Computers

Electronic devices capable of executing a series of arithmetic or logical operations automatically via computer programming.

Opportunity Cost

The relinquishment of potential profits available from other avenues when one option is picked.

Machinery

The machines, equipment, and devices that are used in a variety of industries to increase efficiency in the production of goods or services.