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» <html><body><p></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :True: It happens becauseincrease in excise tax <a href="https://interviewquestions.tuteehub.com/tag/increases-1040626" style="font-weight:bold;" target="_blank" title="Click to know more about INCREASES">INCREASES</a> thecostof production and <a href="https://interviewquestions.tuteehub.com/tag/reduces-621012" style="font-weight:bold;" target="_blank" title="Click to know more about REDUCES">REDUCES</a> the profit <a href="https://interviewquestions.tuteehub.com/tag/margin-546769" style="font-weight:bold;" target="_blank" title="Click to know more about MARGIN">MARGIN</a> of that particular commodity. It leads to the fall in supply even at the same market price.</body></html>