The Clinton administration has recommended an increase in the tax on y

The Clinton administration has recommended an increase in the tax on yachts to help pay for government programs. Which of the following is true?

A) The burden of this tax will fall entirely on yacht consumers.
B) The burden of this tax will fall entirely on yacht manufacturers.
C) The sales of yachts will decrease.
D) The profit of yacht manufacturers will increase.
E) Employment of workers in the yacht industry will increase.

ANSWER

C