Which tax helps manage economic demand for specific products?

The correct choice, excise tax, is a tax imposed on specific goods and services, often to encourage or discourage the consumption of certain products. By taxing items like tobacco, alcohol, or fuel, the government can influence consumer behavior and manage demand. For example, increasing the excise tax on cigarettes may lead to a decrease in smoking rates, as the higher price deters some consumers. This type of tax not only generates revenue but also serves a regulatory purpose, aligning with public health goals or environmental policies.

Other taxes such as income tax and sales tax do not directly target specific products in the way excise tax does; instead, income tax is based on earnings, and sales tax is applied to the overall purchase price of goods. Property tax is based on property ownership and value, which is unrelated to product consumption. Therefore, excise tax uniquely serves the dual function of generating revenue and managing economic demand for specific goods.