Given upward sloping supply and downward sloping demand, a $1 excise tax on any good or service causes the price buyers pay to increase by
a. more than $1.
b. less than $1.
c. exactly $1.
d. Any of the above could be true.
Answer: b
Given upward sloping supply and downward sloping demand, a $1 excise tax on any good or service causes the price buyers pay to increase by
a. more than $1.
b. less than $1.
c. exactly $1.
d. Any of the above could be true.
Answer: b