Suppose an Excise Tax of $1 Is Imposed on Every

question 60

Multiple Choice

Suppose an excise tax of $1 is imposed on every case of beer sold and sellers are responsible for paying this tax.How would the imposition of the tax be illustrated in a graph?

• A)The supply curve for cases of beer would shift to the right by $1.
• B)The supply curve for cases of beer would shift to the left by more than $1.
• C)The supply curve for cases of beer would shift to the left by less than $1.
• D)The supply curve for cases of beer would shift to the left by $1.