-If the government puts a $2 excise tax on a product and as a result,price rises by $0.75,which of the following statements is correct?
A)The sellers pay more of the tax than the buyers.
B)The buyers pay more of the tax than the sellers.
C)The government's tax revenue falls.
D)The quantity demanded of the product falls by 37.5%.
E)The quantity demanded of the product rises by 37.5%.

Question

-If the government puts a $2 excise tax on a product and as a result,price rises by $0.75,which of the following statements is correct?
A)The sellers pay more of the tax than the buyers. 
B)The buyers pay more of the tax than the sellers. 
C)The government's tax revenue falls. 
D)The quantity demanded of the product falls by 37.5%. 
E)The quantity demanded of the product rises by 37.5%.

Quizplus · Accepted Answer

The Answer of 
-If the government puts a $2 excise tax on a product and as a result,price rises by $0.75,which of the following statements is correct?
A)The sellers pay more of the tax than the buyers. 
B)The buyers pay more of the tax than the sellers. 
C)The government's tax revenue falls. 
D)The quantity demanded of the product falls by 37.5%. 
E)The quantity demanded of the product rises by 37.5%.

-If the Government Puts a $2 Excise Tax on a Product