With a downsloping demand curve and an upsloping supply curve for a product,placing an excise tax on this product will:

A) increase equilibrium price and quantity.
B) decrease equilibrium price and quantity.
C) decrease equilibrium price and increase equilibrium quantity.
D) increase equilibrium price and decrease equilibrium quantity.

Downsloping Demand

This term illustrates a standard economic theory where the demand curve slopes downward, indicating that as the price decreases, the quantity demanded increases.

Upsloping Supply

Refers to a supply curve that slopes upwards, indicating that higher prices lead to a higher quantity supplied.

Excise Tax

A tax levied on specific goods or services, such as alcohol or gasoline, usually to discourage their consumption or to raise revenue for public purposes.