The Government of your country wants to discourage the frequent use of alcoholic E decided to impose a tax on every alcoholic drink at the point of sale. What is the effe quantity of alcoholic beverages consumed?
The Government of your country wants to discourage the frequent use of alcoholic E decided to impose a tax on every alcoholic drink at the point of sale. What is the effe quantity of alcoholic beverages consumed?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
![The Government of your country wants to discourage the frequent use of alcoholic beverages, in this attempt they
decided to impose a tax on every alcoholic drink at the point of sale. What is the effect of this tax on the price and
quantity of alcoholic beverages consumed?
Select one:
O a. The price would fall and the quantity would rise.
O b. The price would rise and the quantity would fall.
O c. Both the price and the quantity would rise.
O d. Both the price and the quantity would fall.
Next page
IMG 7969.jpeg
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Transcribed Image Text:The Government of your country wants to discourage the frequent use of alcoholic beverages, in this attempt they
decided to impose a tax on every alcoholic drink at the point of sale. What is the effect of this tax on the price and
quantity of alcoholic beverages consumed?
Select one:
O a. The price would fall and the quantity would rise.
O b. The price would rise and the quantity would fall.
O c. Both the price and the quantity would rise.
O d. Both the price and the quantity would fall.
Next page
IMG 7969.jpeg
JPEO
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