If a Soda Tax Is Implemented and Demand for Soda

question 228

Multiple Choice

If a soda tax is implemented and demand for soda is price elastic, the decline in equilibrium quantity would be ________ and the increase in equilibrium price would be ________ than if demand were inelastic.

• A)larger; larger
• B)larger, smaller
• C)smaller; larger
• D)smaller; smaller

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Definitions:

Big Bluestem Grass

A tall North American prairie grass that is a dominant species in the Great Plains, known for its nutrient-rich forage.

Abiotic Components

Non-living chemical and physical parts of the environment that affect living organisms.

Biotic

Term that indicates life; a cell is an example of a biotic factor in the environment.

Energy Flow

The movement of energy through a food chain or ecosystem, typically from the sun through producers to consumers and finally to decomposers.