If an excise tax is imposed on automobiles and collected from consumers, the:_________a) equilibrium quantity supplied will increase relative to the pretax level.
b) supply curve will shift upward by the amount of the tax.
c) equilibrium quantity demanded will increase relative to the pretax level.
d) demand curve will shift downward by the amount of the tax.

Answers

Answer 1

Answer:

Answer:

D) demand curve will shift downward by the amount of the tax.

Explanation:

An excise tax is a tax levied on specific goods or services, e.g. gas tax.

This tax will have a similar effect on the quantity demanded as a price increase. But instead of shifting the equilibrium point with the demand curve, it will shift the whole demand curve to the left. This leftward shift will reduce the quantity demanded at every price level, which in turn will lower the equilibrium price.

This tax will hurt both consumers and suppliers since it reduces the number of units sold and it increases the price of the cars.

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Answers

A. ACCESS TO INFORMATION

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Answers

For a level file folder, your categorization must be clear and precise so it would be easier for you to store your information.

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Select the correct answer from each drop-down menu. How did the government help the economy? The economy of country Y has experienced increased unemployment and reduced GDP for six months. The government therefore decides to implement fiscal policy that increases and reduces.

Answers

The fiscal policy action taken by the government would increase money supply and reduce tax rate.

What is fiscal policy?

Fiscal policy are actions taken by the government to stimulate the economy in order to achieve full employment and price stability.

Fiscal policies can either be expansionary or contractionary. Expansionary fiscal policy is when the government increases the money supply in the economy either by increasing spending or cutting taxes.

Contractionary fiscal policies is when the government reduces the money supply in the economy either by reducing spending or increasing taxes

To learn more about fiscal policies, please check: brainly.com/question/25716528

Answer:

The answer would be: The government therefor decides to implement fiscal policy that increases Government spending and reduces Taxes.

this answer was correct for me on plato. hope this helped.

Explanation:

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Answers

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GDP is one of the primary indicators of a country's economic performance.
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