If an Excise Tax Is Imposed on a Good,then the Supply

question 7

Multiple Choice

If an excise tax is imposed on a good,then the supply curve:

• A) shifts up by the amount of the demand elasticity.
• B) does not change.
• C) shifts down by the amount of the tax.
• D) shifts up by the amount of the tax.

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Definitions:

Water Retention

The accumulation of excess fluids in the body tissues, often resulting in swelling, which can be caused by a variety of health conditions.

Dehydration

A condition resulting from the excessive loss of body water, impairing normal bodily functions.

Corpus Luteum

A temporary endocrine structure in female ovaries that secretes progesterone to regulate the menstrual cycle and maintain early stages of pregnancy.

Ovulation

The phase in a female's menstrual cycle during which a mature egg is released from the ovary.