How Does the Imposition of an Excise Tax on a Good

question 170

Multiple Choice

How does the imposition of an excise tax on a good affect its market equilibrium?

• A) Equilibrium quantity decreases, and equilibrium price decreases.
• B) Equilibrium quantity decreases, and equilibrium price increases.
• C) Equilibrium quantity increases, and equilibrium price decreases.
• D) Equilibrium quantity increases, and equilibrium price increases.

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Definitions:

Acting Alone

Refers to the state or condition of performing or functioning independently without assistance from others.

Parental Abuser

An individual who inflicts physical, emotional, or sexual abuse on their child or children.

Abusive Parenting

Parental behaviors that physically, emotionally, or sexually harm children, or neglect their basic needs.

Abused Children

Minors who have experienced physical, psychological, sexual abuse, or neglect, often leading to various long-term effects.