If a $2 Tax Per Bottle of Wine Is Imposed

question 57

Multiple Choice

If a $2 tax per bottle of wine is imposed on wine producers, which of the following will occur?

• A) The price of wine will increase, fewer bottles will be purchased, and there will be a deadweight loss from this tax.
• B) The price of wine will increase, more bottles will be purchased, and consumers will gain as the result of this tax.
• C) The price of wine will decrease, more bottles will be purchased, and there will be a deadweight loss from this tax.
• D) The price of wine and quantity sold will be unchanged.

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Definitions:

Denominator

The bottom number in a fraction used to calculate a rate or ratio, representing the total number or population against which a subset is compared.

Older Adults

Individuals typically aged 65 years and older, often studied in the context of aging, health outcomes, and social conditions.

Diabetes

A metabolic disease characterized by high blood sugar levels over a prolonged period, resulting from defects in insulin secretion, insulin action, or both.

Incidence Rate

The frequency at which new cases of a particular disease occur in a population during a specified period.