An increase in the excise tax on alcohol of $1 per liter:
a. will have no effect on alcohol consumption.
b. will generate minimal tax revenues for the federal government.
c. will generate substantial revenues if demand is elastic.
d. coupled with a uniform drinking age nationwide would save lives.
e. will raise the price of alcohol by exactly $1 per lite
d. coupled with a uniform drinking age nationwide would save lives.
You might also like to view...
Interest rates are determined by the supply and demand for
A) money. B) capital goods. C) loanable funds. D) foreign currencies. E) stocks.
Refer to the accompanying figure. Moving from demand curve D1 to demand curve D2 could be caused by a(n):
A. increase in the price of a close substitute. B. increase in the price of a complement. C. decrease in the product's expected future price. D. increase in quantity supplied.