If a tax of 1 a can is imposed on the buyers of sugary drinks, ...

[CBme]

If a tax of 1 a can is imposed on the buyers of sugary drinks, the demand for sugary drinks ______ and the price that buyers pay ______.
 
  A. doesn't change; doesn't change
  B. doesn't change; rises by 1 a can
  C. decreases; rises by more than 1 a can
  D. decreases; rises by less than 1 a can

Question 2

The budget deficit increases during wars and recessions.
 
  Indicate whether the statement is true or false

[Dunkey]

Answer to Question 1

D Figure 7.1(a) illustrates this result.

Answer to Question 2

TRUE

[CBme]

YES! Correct, THANKS for helping me on my review

[tranoy]

Excellent