Welcome to Westonci.ca, where your questions are met with accurate answers from a community of experts and enthusiasts. Discover in-depth answers to your questions from a wide network of professionals on our user-friendly Q&A platform. Join our platform to connect with experts ready to provide precise answers to your questions in different areas.

An excise tax on alcohol causes the supply of alcohol to decrease and the price of alcohol to decrease.

a. True
b. False

Sagot :

Answer:

False

Explanation:

An excise tax is tax levied on some specific goods. It is an indirect tax because it is not levied on customers.

Excise tax would increase the cost of supplying alcohol. This would reduce the supply of tax. A decrease in the supply of tax would increase the price of alcohol