Explain Why It Is That How Much Consumers Pay for an Excise

question 109

Essay

Explain why it is that how much consumers pay for an excise tax depends on how responsive they are to a given change in market price.

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Definitions:

Temperature

A measure of the average kinetic energy of the particles in a system, related to the concept of heat.

°C

Degrees Celsius, a scale and unit of measurement for temperature where 0°C is the freezing point of water and 100°C is the boiling point at sea level.

Volume

Volume is a measure of the three-dimensional space occupied by a substance or enclosed within a container, expressed in cubic units.

Temperature

Temperature is a physical quantity reflecting the thermal energy of an object or system, indicative of the degree of heat or coldness measurable by a thermometer.