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In order to discourage consumers from eating unhealthy fast food, the government is considering ...

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DelorasTo:
In order to discourage consumers from eating unhealthy fast food, the government is considering placing a tax on all fast food sales. Which of the following statements is 
true?
◦ Given the numerous alternatives, consumers' demand for fast food is relatively inelastic and the tax will not likely work to discourage fast food consumption.
◦ The tax on fast food will likely raise considerable revenue but will be unlikely to reduce the consumption of fast food by consumers.
◦ The tax on fast food will likely increase the demand for home cooked meals.
◦ A tax on fast food will only be effective if demand is perfectly inelastic.

gasdhashg:
The tax on fast food will likely increase the demand for home cooked meals.

DelorasTo:
Thanks

gasdhashg:
Welcome :)

:
thank you

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