The Imposition of a Unit Excise Tax on Beer Will

question 74

Multiple Choice

The imposition of a unit excise tax on beer will

• A)lower equilibrium price and quantity in the market.
• B)increase equilibrium quantity and price in the market.
• C)lower equilibrium quantity and raise equilibrium price in the market.
• D)raise equilibrium quantity and lower equilibrium price in the market.

---

Definitions:

Custom-Made

Products or services that are specially designed and produced to meet the specific requirements or specifications of a customer.

Prime Cost

The combined costs of direct materials and direct labor incurred to produce a product.

Direct Material

Raw materials that can be directly attributed to the production of specific goods or services, utilized in their creation.

Direct Labour Cost

A cost that can be directly attributed to the production of specific goods or services, such as wages paid to employees who physically produce a product.