By Drawing a Demand Curve with ________ on the Vertical

question 70

Multiple Choice

By drawing a demand curve with ________ on the vertical axis and ________ on the horizontal axis, economists assume that the most important determinant of the demand for a good is the ________ of the good.

• A)quantity; price; quantity
• B)price; quantity; quantity
• C)price; quantity; price
• D)quantity; price; price

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Definitions:

Excise Tax

Is a tax applied on the sale or production for sale of specific goods within a country.

Incidence

Refers to how the burden of a tax is distributed between buyers and sellers in the market.

Efficiency Loss

The loss of economic efficiency that can occur when the equilibrium for a good or service is not achievable or not achieved.

Excise Tax

A tax charged on specific goods and services, such as tobacco, alcohol, and gasoline, typically imposed at the manufacturing or production level.