Question 1
Related to the
Economics in Practice on page 121: Before the imposition of an excise tax on beer, name-brand beer sold for $20 per case and generic beer sold for $12 per case. After the imposition of the tax, name-brand beer sold for $28 per case and generic beer sold for $20 per case. The slope of the budget line for a consumer choosing between name-brand and generic beer before the tax was imposed was
◦ 0.6.
◦ 0.71.
◦ 1.4.
◦ 1.67.
Question 2
Related to the
Economics in Practice on page 121: Before the imposition of an excise tax on beer, name-brand beer sold for $20 per case and generic beer sold for $12 per case. After the imposition of the tax, name-brand beer sold for $28 per case and generic beer sold for $20 per case. The slope of the budget line for a consumer choosing between name-brand and generic beer after the tax was imposed was
◦ 0.6.
◦ 0.71.
◦ 1.4.
◦ 1.67.