Shoes are currently subject to an excise tax of 5 Shoes are currently subject to an excise tax of $5

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Shoes are currently subject to an excise tax of 5
Shoes are currently subject to an excise tax of $5 per pair, and they sell for a price of $20 per pair.

a. If the excise tax is repealed, what can you say about the new price of shoes?

b. If the excise tax is repealed and replaced with a $5 sales tax, what can you say about the new price of shoes?

c. If the excise tax is repealed and replaced with an $8 sales tax, what can you say about the new price of shoes?

Shoes are currently subject to an excise tax of 5

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