asked 178k views
1 vote
Assuming a normal upward-sloping supply curve and downward-sloping demand curve, if the government imposes a $5 excise tax on leather shoes and collects the tax from the suppliers, the price of leather shoes will: a) increase by more than $5. b) increase by $5 c) increase, but we cannot determine by how much. d) increase by less than $5.

asked
User Adam DS
by
7.7k points

1 Answer

2 votes

Answer:

Option D......increase by less than $5

answered
User Streak
by
7.5k points
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