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Author Question: In order to discourage consumers from consuming sugary soft drinks, the government is considering ... (Read 667 times)

Jkov05

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In order to discourage consumers from consuming sugary soft drinks, the government is considering placing a tax on sugary soft drink sales. Which of the following statements is 
true?


◦ Given the numerous alternatives, consumers' demand for sugary soft drinks is relatively elastic and the tax will likely work to discourage sugary soft drink consumption.
◦ The tax on sugary soft drinks will likely raise considerable revenue, but will be unlikely to reduce the consumption of sugary soft drinks by consumers.
◦ The tax on sugary soft drinks will likely decrease the demand for sugar-free soft drinks.
◦ Taxes do not discourage consumers from consuming products.


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Marked as best answer by Jkov05 on Apr 19, 2019

Tabitha_2016

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