Which of the Following Statements About Excise Taxes Is TRUE

question 122

Multiple Choice

Which of the following statements about excise taxes is TRUE?

• A) The producer will increase the price of the good by the amount of the excise tax.
• B) The equilibrium price will increase and the equilibrium quantity will remain unchanged.
• C) Both the consumer and producer pay part of the excise tax.
• D) Consumers will refuse to pay excise taxes forcing the producers to pay it.

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Definitions:

Vertebrates

Animals characterized by having a backbone or spinal column, including mammals, birds, reptiles, amphibians, and fish.

Chordates

A large phylum of animals that, at some stage in their development, possess a notochord, a hollow dorsal nerve cord, and pharyngeal slits, including vertebrates like fishes, amphibians, reptiles, birds, and mammals.

Amphibian Heart

A three-chambered heart found in amphibians that consists of two atria and one ventricle, partially separating oxygenated and deoxygenated blood.