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:

Question

Quizplus · Accepted Answer

The simultaneous imposition of a 3 cent sales tax and a 5 cent excise tax increases the cost of coffee by a total of 8 cents, which has the same effect on coffee sales as an 8 cent excise tax alone.

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