This topic contains a solution. Click here to go to the answer

Author Question: A government is considering levying an alcohol tax to raise revenue to finance health care benefits. ... (Read 121 times)

Jramos095

  • Hero Member
  • *****
  • Posts: 528

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.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by Jramos095 on Apr 19, 2019

cat123

  • Sr. Member
  • ****
  • Posts: 310
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.
Answer Preview
Only 25% of students answer this correctly




Jramos095

  • Member
  • Posts: 528
Reply 2 on: Apr 19, 2019
Gracias!


raili21

  • Member
  • Posts: 324
Reply 3 on: Yesterday
:D TYSM

 

Did you know?

Many medications that are used to treat infertility are injected subcutaneously. This is easy to do using the anterior abdomen as the site of injection but avoiding the area directly around the belly button.

Did you know?

Asthma cases in Americans are about 75% higher today than they were in 1980.

Did you know?

According to the CDC, approximately 31.7% of the U.S. population has high low-density lipoprotein (LDL) or "bad cholesterol" levels.

Did you know?

Studies show that systolic blood pressure can be significantly lowered by taking statins. In fact, the higher the patient's baseline blood pressure, the greater the effect of statins on his or her blood pressure.

Did you know?

The modern decimal position system was the invention of the Hindus (around 800 AD), involving the placing of numerals to indicate their value (units, tens, hundreds, and so on).

For a complete list of videos, visit our video library