In What Way Is the Result of an Excise Tax

question 47

Multiple Choice

In what way is the result of an excise tax imposed on either demanders or suppliers similar to the result of a price ceiling?

• A) The amount that consumers pay for the good will be less than they previously paid
• B) The amount of the good that will be traded in the market will be less than previously traded
• C) both price ceilings and excise taxes create excess demand
• D) The amount that consumers pay for the good will be greater than they previously paid
• E) both price floors and excise taxes create excess supply

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Definitions:

Adversarial Approach

A strategy or method that involves opposition or conflict, often seen in legal systems where two parties argue against each other.

Amicable Relations

Friendly and peaceful interactions or connections between individuals or groups.

Mutual Concessions

An agreement process where all parties involved make compromises, often to reach a solution in negotiations.

Grant Proposal

A formal request for financial support, typically submitted to funding agencies or private foundations, detailing a planned project or research endeavor.