When a new excise tax is imposed, businesses often pass on the cost of the tax to consumers by raising prices. This price increase can impact purchasing behaviors and overall consumption patterns. Consumers may adjust their budgets, opt for cheaper alternatives, or reduce their spending on certain goods and services. The specific effects depend on various factors, such as the elasticity of demand for the products, market competition, and consumer preferences. By understanding the potential consequences of introducing new excise taxes, governments and policymakers can make informed decisions that strike a balance between generating revenue and mitigating negative impacts on consumers and businesses.