Refer to the Following Table to Answer the Question A)cigarettes

question 13

Multiple Choice

Refer to the following table to answer the question. A local government is looking to reduce "undesirable" behavior on the part of its citizens: drinking alcoholic beverages and smoking. Assuming people cannot shop for alcoholic beverages out of town, a 10 percent tax on all alcoholic beverages would have the largest proportionate effect on the sale of: $\begin{array}{|c|c|}\hline \text { Good } & \text { Elasticity } \\\hline \text { Cigarettes } & .3 \\\hline \text { Liquor } & .5 \\\hline \text { Wine } & .4 \\\hline \text { Beer } & .1\\\hline \end{array}$

• A)cigarettes.
• B)liquor.
• C)beer.
• D)wine.

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Definitions:

Contactor Unit

An electromechanical switch used for switching an electrical power circuit, similar to a relay but with higher capacity.

Switch Contacts

The conductive parts of a switch that come together or separate to make or break an electrical circuit.

Mechanical Linkage

A system of interconnected levers or gears which transmits and modifies motion in machinery.

Power Failure

A condition where the electrical power supply to a device, system, or area is interrupted or lost.