Define an Excise Tax and Give Three Examples

question 27

Essay

Define an excise tax and give three examples. Explain the relationship between a tariff and an excise tax. Use supply and demand analysis to explain why the equilibrium price of apples will rise and the equilibrium quantity will fall if an excise tax is levied on apples. Explain why the price of apples will not rise by the full amount of the tax.

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Definitions:

Settled Village

A permanent community where inhabitants live year-round, often marked by agriculture, permanent structures, and a degree of socio-political organization.

Temple

A structure dedicated to religious or spiritual activities, often characterized by its architectural grandeur and significance in many cultures.

Fortress Walls At Jericho

Ancient defensive structures that surrounded the city of Jericho, believed to be some of the oldest fortifications discovered to date.

BCE

stands for Before Common Era, a non-religious alternative term to B.C., denoting years before the start of the Gregorian calendar's year count.