In Order to Discourage Consumers from Consuming Sugary Soft Drinks

question 63

Multiple Choice

In order to discourage consumers from consuming sugary soft drinks, the government is considering placing a tax on sugary soft drink sales. Which of the following statements is true?

• A) Given the numerous alternatives, consumers' demand for sugary soft drinks is relatively elastic and the tax will likely work to discourage sugary soft drink consumption.
• B) The tax on sugary soft drinks will likely raise considerable revenue, but will be unlikely to reduce the consumption of sugary soft drinks by consumers.
• C) The tax on sugary soft drinks will likely decrease the demand for sugar-free soft drinks.
• D) Taxes do not discourage consumers from consuming products.

---

Definitions:

Void

Describes a contract or legal agreement that lacks validity and enforceability from the outset.

Economic Duress

Coercion involving threats to a person’s business or financial condition that compel the person to act against their will in entering a contract.

Voluntary Choice

The concept of making decisions freely, without coercion, often discussed in contexts of contract law and ethics.

Legitimate Alternatives

Viable and lawful options or solutions that are considered acceptable within a given context or situation.