Suppose an excise tax of $0.75 is imposed on every pack of cigarettes sold and sellers are responsible for paying this tax.How would the imposition of the tax be illustrated in a graph?
A) The supply curve for cigarettes would shift up by $0.75.
B) The supply curve for cigarettes would shift up by less than $0.75.
C) The supply curve for cigarettes would shift up by more than $0.75.
D) The supply curve for cigarettes would shift down by $0.75.
Correct Answer:
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