The Simultaneous Imposition of a 3 Cent Sales Tax and a 5

Multiple Choice

The simultaneous imposition of a 3 cent sales tax and a 5 cent excise tax on the sale of a cup of coffee would have the same effect on coffee sales as:

A) a 2 cent subsidy.
B) a 2 cent excise tax .
C) a 3 cent excise tax .
D) an 8 cent excise tax.