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.

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Calculate

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Y-intercept

The location on a graph where a line intersects with the y-axis, showing the dependent variable's value at the point the independent variable equals zero.

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Linear Regression Equation

An equation used to predict the value of a dependent variable based on one or more independent variables, typically in the form y = mx + b.