Seth's grandmother gave him a $50 savings bond for his birthday. The bond pays $50 at maturity, which is in five years. If the interest rate is 5%, the bond has a present value of $43.19

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.

If the supply of a good is inelastic, a decrease in price must increase total revenue

a. True b. False Indicate whether the statement is true or false