Other things equal, an excise tax on a product will

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An excise tax is a tax on a specific good or service, usually imposed by the government. When a tax is placed on a product, the cost of producing that product increases. To compensate for the higher cost of production, the producer will typically increase the price of the product. This means that the consumers will pay more for the product, and as a result, the demand for the product may decrease. In this scenario, the supply may decrease as well, because the producers may find it less profitable to produce the product at a higher cost. Overall, an excise tax on a product will increase its price.

Other Things Equal, an Excise Tax on a Product Will