If a unit excise tax is placed on a good for which the demand is very unresponsive to a price change, then
A) the government generally pays the majority of the tax.
B) the consumers generally pay the majority of the tax.
C) the producers generally pay the majority of the tax.
D) producers and consumers pay equal portions of the tax.
Sales taxes are routinely collected by
A) the merchants selling the good or services.
B) the Internal Revenue Service.
C) the Department of Commerce.
D) the Federal Trade Commission.
Should the government wish to lower the price of gasoline to the consumer, one approach might be
A) to raise the gasoline excise tax.
B) to reduce the gasoline excise tax.
C) to take action to shift the supply curve of gasoline to the left.
D) to lower taxes on automobiles.
How is the market for gasoline affected if the excise tax on gasoline is reduced?
A) The supply of gasoline decreases.
B) The supply of gasoline increases.
C) The equilibrium quantity of gasoline decreases.
D) The equilibrium price of gasoline increases.