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Assume That the Demand Curve for Oranges Is Downward-Sloping and the Supply

Question 15

Multiple Choice

Assume that the demand curve for oranges is downward-sloping and the supply curve for oranges is upward-sloping.If the government imposes an excise tax of 10¢ per orange,then the total price (including the tax) that demanders must pay for an orange


A) remains unchanged.
B) rises by less than 10¢ per orange.
C) rises by exactly 10¢ per orange.
D) rises by more than 10¢ per orange.

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