Author Question: How would the market for coffee be affected if the government charged an excise tax of 1.00 on each ... (Read 74 times)

Diane · **on:** Jun 29, 2018

How would the market for coffee be affected if the government charged an excise tax of 1.00 on each unit of coffee sold?

A) There would be a shortage of coffee.
B) The demand for coffee would increase.
C) The demand for coffee would decrease.
D) The supply curve would shift up vertically by 1.00.

Question 2

When the government sets a maximum price that can be charged for a good or service, it creates

A) a price support.
B) a price floor.
C) a white market.
D) a price ceiling.