If a New Unit Excise Tax Is Levied on Bottles

question 117

Multiple Choice

If a new unit excise tax is levied on bottles of wine, the

• A)demand for wine shifts to the left.
• B)demand for wine shifts to the right.
• C)supply of wine shifts to the right.
• D)supply of wine shifts to the left.

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Definitions:

Absolute Threshold

The minimum amount of stimulus energy that a person can detect.

Difference Threshold

The degree of difference that must exist between two stimuli before the difference is detected.

Inattentional Blindness

The phenomenon where an individual fails to perceive an unexpected stimulus that is in plain sight, due to the attention being focused on another task or aspect of their environment.

Inattentional Blindness

The phenomenon where an individual fails to notice a fully visible, but unexpected object because their attention was engaged on another task, event, or object.