The imposition of an excise tax usually causes the price paid by consumers to ,while the price received by sellers .
A)fall; remains unchanged
B)rise; falls
C)fall; falls
D)rise; remains unchanged
E)rise; rises

Question

Quizplus · Accepted Answer

The imposition of an excise tax usually leads to an increase in the cost of production for sellers. To offset this cost, sellers raise the price of the product, which causes the price paid by consumers to rise. Therefore, the price paid by consumers rises, while the price received by sellers falls.

The Imposition of an Excise Tax Usually Causes the Price