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Author Question: A government is considering levying an alcohol tax to raise revenue to finance health care benefits. ... (Read 125 times)

Jramos095

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on: Apr 19, 2019

A government is considering levying an alcohol tax to raise revenue to finance health care benefits. People for the tax argue that alcohol demand is price inelastic. Which of the following statements is 
true?


◦ The alcohol tax may not raise as much revenue as anticipated in the years to come because alcohol demand is more elastic the longer the period of time consumers have to adjust.
◦ This is a very good way to raise revenue both in the short term and in the long term because there are no close substitutes for alcohol.
◦ This tax will not raise much revenue either in the short term or the long term because demand is price inelastic.
◦ No tax revenue can be raised in this way because alcohol sellers will just lower their price by the amount of the tax, and therefore the consumer price of alcohol will not change.
Principles of Economics ¦ Case, Fair, Oster ¦ 12th Edition
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Marked as best answer by Jramos095 on Apr 19, 2019

cat123

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Reply #1 on: Apr 19, 2019
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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Jramos095

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Reply 2 on: Apr 19, 2019
YES! Correct, THANKS for helping me on my review

ebonylittles

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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