In Order to Discourage Consumers from Eating Unhealthy Fast Food

question 58

Multiple Choice

In order to discourage consumers from eating unhealthy fast food, the government is considering placing a tax on all fast food sales. Which of the following statements is true?

• A) Given the numerous alternatives, consumers' demand for fast food is relatively inelastic and the tax will not likely work to discourage fast food consumption.
• B) The tax on fast food will likely raise considerable revenue but will be unlikely to reduce the consumption of fast food by consumers.
• C) The tax on fast food will likely increase the demand for home cooked meals.
• D) A tax on fast food will only be effective if demand is perfectly inelastic.

---

Definitions:

Organic Solvent

A solvent containing carbon that is used to dissolve other substances; it is an essential part of many chemical processes because it can dissolve many organic compounds.

Molecular Formula

A representation of the numbers and types of atoms present in a molecule, but not its structure.

Cyclopentane

A cyclic alkane with the molecular formula C5H10, characterized by a ring of five carbon atoms, used as a solvent and in the synthesis of rubber.

Cyclohexane

A saturated hydrocarbon with a six-membered ring structure, commonly used as a solvent or chemical precursor in various industrial applications.