The Price Elasticity of Demand for Soft Drinks Has Been

question 103

Multiple Choice

The price elasticity of demand for soft drinks has been estimated to be 0.55.If the government enacts a major increase in the tax on imported sugar (a major ingredient in soft drink manufacturing) ,how will that affect total expenditures on soft drinks,all other things equal?

• A)Total expenditures will remain unchanged.
• B)Total expenditures will fall.
• C)Total expenditures will rise.
• D)People will buy Pepsi instead of Coke.

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Definitions:

Outstanding Checks

Checks that have been written and recorded in the issuing company's books but have not yet been cleared by the bank.

Outstanding Checks

Checks that have been written and recorded in the issuing party's account but have not yet been cashed or cleared by the bank.

Reconciliation Procedure

A process used to ensure that two sets of records (usually the balances of two accounts) are in agreement, identifying discrepancies and reasons for them.

Internal Control

Internal control constitutes the procedures and mechanisms implemented by a company to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.