Question

According to the Food and Drug Administration, "...the ultraviolet (UV) radiation from these devices [sunlamps and tanning beds] poses serious health risks." As a result of reading this, the local mayor decides to introduce legislation that will put a 10% excise tax on tanning consumers. From an economic point of view, this will________

Answer 1

Answer:

B. shift the demand curve leftward for tanning

Explanation:

According to the Food and Drug Administration, "...the ultraviolet (UV) radiation from these devices [sunlamps and tanning beds] poses serious health risks." As a result of reading this, the local mayor decides to introduce legislation that will put a 10% excise tax on tanning consumers. From an economic point of view, this will________

A. shift the demand curve rightward for tanning.

B. shift the demand curve leftward for tanning.

C. shift the supply curve rightward for tanning.

D. move down along the demand curve for tanning.

The excise tax is a legislated form of tax on specific goods and services at purchase; an indirect type of indirection taxation imposed on the manufacture, sale or the use of certain type of good and products. They are often levied upon goods services such as cigarettes, gasoline,alcohol, tobacco and gambling. They are considered unnecessary goods and services, Taxes are levied on them to raise their price and in order to reduce the amount they are been used.

The local mayor decides to introduce legislation that will put a 10% excise tax on tanning consumers in order to lower the demand for these devices

Consumer will now need to pay higher tax in addition to the price they will pay for the device, this is make people to tan less because of the extra cost. this will lead to a shift in the demand curve