If the Government Imposes a Sin Tax on Alcohol and the Demand

question 97

Multiple Choice

If the government imposes a sin tax on alcohol and the demand for alcohol is inelastic, the tax will cause a:

• A) large decrease in quantity demanded but will generate less revenue than it would if the demand were elastic.
• B) large decrease in quantity demanded but will generate more revenue than it would if the demand were elastic.
• C) small decrease in quantity demanded but will generate less revenue than it would if the demand were elastic.
• D) small decrease in quantity demanded but will generate more revenue than it would if the demand were elastic.

---

Definitions:

Neolithic Food Storage

Methods developed during the Neolithic era to store food, enabling the transition from nomadic lifestyles to settled communities.

Stone-Lined

Pertaining to structures or surfaces lined or edged with stones, commonly used in reference to ancient constructions or natural formations.

Adobe Corrals

Enclosures or pens for livestock, traditionally made from adobe, a natural building material of earth, water, and organic materials like straw, molded into bricks and dried in the sun.

Artificial Ponds

Man-made bodies of water created for various purposes such as irrigation, aesthetic enjoyment, or wildlife habitat support.