If a New Unit Excise Tax Is Levied on Bottles

question 117

Multiple Choice

If a new unit excise tax is levied on bottles of wine, the

• A)demand for wine shifts to the left.
• B)demand for wine shifts to the right.
• C)supply of wine shifts to the right.
• D)supply of wine shifts to the left.

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Definitions:

Joint Probabilities

The probability of two or more events happening at the same time, often represented within a probability distribution.

Rule of 5

A guideline in statistics that suggests if the sample size is smaller than 5, certain statistical methods, such as normal approximation, may not be reliable.

Expected Values

The mean of a probability distribution, representing the average outcome one can expect to see.

Null Hypothesis

A statement used in statistics that suggests there is no significant difference or effect, serving as the default assumption to be tested.