The Local City Council Wants to Increase the Tax on Alcohol

question 20

Multiple Choice

The local city council wants to increase the tax on alcohol sales.The intent of the tax is to help raise tax revenue to supplement funds needed for a new elementary school.This tax would only be effective if the price elasticity of demand for alcohol is

• A)Elastic
• B)Inelastic
• C)Unit
• D)Perfectly elastic

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Definitions:

Fixed Mind-Set

A belief that one's abilities, intelligence, and talents are fixed traits, leading to a reluctance to embrace challenges or learn from mistakes.

Growth Mind-Set

The belief that one's abilities and intelligence can be developed through dedication and hard work.

Malleable

Capable of being shaped or formed; easily influenced or adaptable.

Innate

refers to qualities, abilities, or knowledge that are present in an individual from birth, not acquired through experience or learning.