If the Federal government enacts a new excise tax of $1.50 per case of soda. Which of the following is most likely to occur?
a. Consumers of soda will pay a higher price and buy a larger quantity.
b. Consumers of soda will pay a higher price, which will increase the profits of soda companies, inducing them to sell a larger quantity.
c. Consumers of soda will pay a higher price and buy a smaller quantity.
d. Consumers of soda will buy less bottled water.
C
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The poverty rate for the elderly has declined noticeably since the mid 1960s
Indicate whether the statement is true or false
When we say that an individual behaves according to "rational self-interest," we mean that this individual
A) is motivated by greed. B) will always buy the most fashionable items available. C) will always buy the cheapest products available on the market. D) is making choices that he or she believes will leave him or her better off.