The General Equilibrium Effects of an Excise Tax on a Commodity

Multiple Choice

The general equilibrium effects of an excise tax on a commodity which would then be used to fund improvements to our national parks:

A) would probably raise the price of the commodity and raise the price of labor in the national park system.
B) would probably lower the price of the commodity and raise the price of labor in the national park system.
C) would probably raise the price of the commodity and raise the price of labor in the economy as a whole.
D) would probably raise the price of the commodity and lower the price of labor in the economy as a whole.