Suppose a Market Is in Equilibrium at Price P₀,and Then

Multiple Choice

Suppose a market is in equilibrium at price P₀,and then an excise tax of t dollars per unit of the good is imposed.At a price of (P₀ + t) there will be excess ________ for the good unless the demand curve is ________.

A) supply; horizontal
B) supply; vertical
C) demand; horizontal
D) demand; vertical
E) tax; unit elastic