What happens when the government imposes a unit excise tax on a good?
A) The amount of the tax is added to the current equilibrium price.
B) The demand for the newly taxed good decreases.
C) That good's supply curve shifts down by the amount of the tax.
D) The newly taxed good's supply curve shifts vertically upward by the amount of the per-unit tax being levied.
D
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Suppose a country's net exports equal -$2.1 billion. Which of the following will happen if the volume of exports increases by $3 billion without any change in the volume of imports?
A) The country's net exports will stand at -$5.1 billion. B) The country's net exports will stand at zero. C) The country's net exports will stand at -$0.9 billion. D) The country's net exports will become positive.
Name and briefly describe the three balance of payments accounts
What will be an ideal response?