Recently, Many Cities Have Attempted to Pass Laws Taxing the Sale

question 9

Multiple Choice

Recently, many cities have attempted to pass laws taxing the sale of sugary drinks such as soda pop. If one of these laws passes, we would expect

• A)the supply curve for soda pop to shift to the right.
• B)the supply curve for soda pop to become more vertical.
• C)the demand curve for soda pop to shift to the right.
• D)the demand curve for soda pop to shift to the left.

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Definitions:

Special Assessment

A charge that local governments impose on property owners to fund specific projects, such as infrastructure improvements, which directly benefit the property owners.

Derived Tax Revenues

Revenues obtained from taxes that are not directly levied on income or profits but are instead based on the use or consumption of goods and services.

Committed

Refers to being pledged or bound to a certain course or policy, especially in the context of project or resource planning.

Nonspendable

Funds that cannot be spent because they are either not in spendable form or are legally or contractually required to be maintained intact.