Recently, the government considered adding an excise tax on CDs that can be used to record music and CD players that can record discs.If this tax were enacted, we would expect:
A.that consumers would pay a higher price and producers would sell fewer of these CDs and CD players than before the tax.
B.no effect on the consumption or the prices paid by consumers of these CDs and CD players.
C.that consumers would pay a lower price and producers would receive a higher price for these CDs and CD players than before the tax.
D.an increase in economic activity due to the tax.

Question

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The Answer of Recently, the government considered adding an excise tax on CDs that can be used to record music and CD players that can record discs.If this tax were enacted, we would expect:
A.that consumers would pay a higher price and producers would sell fewer of these CDs and CD players than before the tax.
B.no effect on the consumption or the prices paid by consumers of these CDs and CD players.
C.that consumers would pay a lower price and producers would receive a higher price for these CDs and CD players than before the tax.
D.an increase in economic activity due to the tax.

Recently, the Government Considered Adding an Excise Tax on CDs