When Both Supply and Demand Decrease,the Equilibrium Price ________ and Equilibrium

question 86

Multiple Choice

When both supply and demand decrease,the equilibrium price ________ and equilibrium quantity ________.

• A) increases; increases
• B) is indeterminate; increases
• C) decreases; is indeterminate
• D) increases; is indeterminate
• E) is indeterminate; decreases

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Definitions:

Excise Tax

A tax levied on specific goods, services, or transactions, often to discourage consumption or generate revenue for specific purposes.

Tax Revenue

The income that is gained by governments through taxation, which is used to fund public services and government obligations.

Government

The organization, machinery, or agency through which a political unit exercises authority and performs functions and which is usually classified as democratic, authoritarian, etc.

Excise Tax

Excise tax is a type of tax charged on specific goods, services, and activities, such as alcohol, tobacco, and fuel, usually to discourage their use or generate revenue.