An increase in excise tax leads to faill in supply of the given commodity, without any change in its market price.

An increase in excise tax leads to faill in supply of the given commod

1.	An increase in excise tax leads to faill in supply of the given commodity, without any change in its market price.
Answer» SOLUTION :True: It happens becauseincrease in excise tax INCREASES thecostof production and REDUCES the profit MARGIN of that particular commodity. It leads to the fall in supply even at the same market price.