An excise tax _____ consumer surplus and _____ producer surplus.
A) increases; increases
B) increases; decreases
C) decreases; increases
D) decreases; decreases

Name: An excise tax _____ consumer surplus and _____ producer surplus. A) increases; increases B) increases; decreases C) decreases; increases D) decreases; decreases
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Question

Quizplus · Accepted Answer

An excise tax decreases consumer surplus because it raises the price consumers pay, and it decreases producer surplus because it lowers the effective price producers receive.

An Excise Tax _____ Consumer Surplus and _____ Producer Surplus

An Excise Tax _ Consumer Surplus and _ Producer Surplus