If the Federal Government Enacts a New Excise Tax of $1.50

question 114

Multiple Choice

If the Federal government enacts a new excise tax of $1.50 per case of soda, which of the following is most likely to occur?

• A) Consumers of soda will pay a higher price and buy a larger quantity.
• B) Consumers of soda will pay a higher price, which will increase the profits of soda companies, inducing them to sell a larger quantity.
• C) Consumers of soda will pay a higher price and buy a smaller quantity.
• D) Consumers of soda will buy less bottled water.

---

Definitions:

Develop Hobbies

The process of identifying and engaging in leisure activities for enjoyment, relaxation, or learning new skills.

Reduce Stress

Strategies or actions taken to decrease tension, anxiety, or the negative impact of stress on an individual's life.

Electronic Junk Mail

Unsolicited and often unwanted emails, typically sent in bulk for advertising purposes, also known as spam.

Junk Mail

Unsolicited or unwanted email messages, typically of a commercial nature, sent to a large number of recipients.