In 2016, Philadelphia Imposed a Tax of 1

question 140

Multiple Choice

In 2016, Philadelphia imposed a tax of 1.5 cents per ounce on sweetened beverages, and PepsiCo indicated that its sales in Philadelphia fell by 40 percent after the tax took effect.If the demand for sweetened beverages in Philadelphia is unit elastic, then the price of Pepsico's sweetened beverages in Philadelphia would have increased by ________ percent following the implementation of the tax.

• A)< 40
• B)40
• C)> 40
• D)The price would not have changed if demand was unit elastic.

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Definitions:

Finishing Products

The final stages in the production process where goods are completed and made ready for sale.

Cost of Goods Manufactured

The total production cost of goods completed and ready for sale during a specific accounting period.

Cost of Goods Manufactured

The total production cost of goods that are completed and ready for sale during a specific accounting period, including the costs of raw materials, labor, and overhead.

Manufacturing Operations

Processes and activities involved in converting raw materials into finished products, including production planning, assembly, and quality control.