An Analysis of the Effect of Excise Taxes on Markets

question 21

Multiple Choice

An analysis of the effect of excise taxes on markets allows us to conclude that:

• A)when the price elasticity of supply is equal to zero,an excise tax falls entirely on the consumers.
• B)when the price elasticity of demand is lower than the price elasticity of supply,an excise tax falls mainly on the producers.
• C)whether the tax is levied on consumers or producers,the quantity sold will be the same.
• D)when the price elasticity of demand is higher than the price elasticity of supply,an excise tax falls mainly on the consumers.

---

Definitions:

Deductive Outline

is a framework for organizing information or arguments that starts with a general statement or hypothesis and then presents specific evidence or examples.

Feedback Message

Information returned to the sender about the effectiveness or impact of a communication.

Grammatical Errors

Mistakes in the use of language rules, including syntax, verb tense, punctuation, and spelling within written communication.

Sales Promotional Material

Marketing tools designed to enhance awareness and sales of a product, including flyers, samples, and online ads.