Multiple Choice
Suppose the government imposes a $10 excise tax on the sale of sweaters by charging suppliers $10 for each sweater sold.If the demand curve is downward-sloping and the supply curve is upward-sloping:
A) the price of sweaters will increase by $10.
B) consumers of sweaters will bear the entire burden of the tax.
C) the price of sweaters will increase by less than $10.
D) the price of sweaters will decrease by $10.
Correct Answer:
Verified
Correct Answer:
Verified
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