Which of the following is true of an excise tax?
A) It has an income and a substitution effect.
B) It only has an income effect.
C) It only has a substitution effect.
D) The income and substitution effects work in opposite directions in case of an excise tax.
Correct Answer:
Verified
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Q23: The income effect of a price change:
A)is
Q24: The substitution effect of a price change:
A)will
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Q27: Assume that the excise tax rate on
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A)Some
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