Consumers Buy Both Alcoholic and Nonalcoholic Beverages

question 60

Multiple Choice

Consumers buy both alcoholic and nonalcoholic beverages.If the government tries to discourage people from drinking alcoholic beverages by imposing an excise tax on them but gives consumers an income subsidy to keep the consumers on their original indifference curves:

• A)the same amount of both goods will be consumed.
• B)fewer alcoholic and more nonalcoholic beverages will be consumed.
• C)more alcoholic and fewer nonalcoholic beverages will be consumed.
• D)it is impossible to determine what will happen to the consumption of alcoholic and more nonalcoholic beverages.

---

Definitions:

Carotenoids

A class of pigments found in plants that are responsible for yellow, orange, and red colors and play roles in photosynthesis and photoprotection.

Steroids

Complex molecules containing carbon atoms arranged in four attached rings, three of which contain six carbon atoms each and the fourth of which contains five (e.g., cholesterol and certain hormones, including the male and female sex hormones of vertebrates).

Purine Base

A type of nitrogen-containing base, including adenine and guanine, which are components of DNA and RNA.

Guanine

A nitrogenous purine base that is a component of nucleic acids and GTP.