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.

---

Definitions:

Payoffs

The outcomes or returns from a particular action or investment.

Prior Probabilities

The probabilities assigned to events or hypotheses before any new evidence is considered.

States of Nature

Different hypothetical conditions or outcomes that could affect a decision in decision theory.

Lingerie Store

A commercial establishment that specializes in selling women's underwear, nightwear, and similar intimate apparel.