In an analysis of an excise tax on soda,which of the following is an exogenous variable?

Question

Quizplus · Accepted Answer

The tax is an exogenous variable because it is imposed by the government and is not affected by the behavior of buyers or sellers in the market. The other variables (price received by sellers, price paid by buyers, and quantity exchanged in the market) are endogenous variables because they are determined by the behavior of buyers and sellers in response to the tax.

In an Analysis of an Excise Tax on Soda,which of the Following