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What Determines the Proportion of a Unit Excise Tax That

Question 115

Multiple Choice

What determines the proportion of a unit excise tax that will be passed on to consumers in the form of higher prices?


A) the nature of the projects funded by the tax
B) the number of additional taxes that consumers have to pay
C) the popularity of the tax
D) the degree to which quantity demanded and supplied of the good respond to price changes

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