If a Soda Tax Is Implemented and Demand for Soda

question 228

Multiple Choice

If a soda tax is implemented and demand for soda is price elastic, the decline in equilibrium quantity would be ________ and the increase in equilibrium price would be ________ than if demand were inelastic.

• A)larger; larger
• B)larger, smaller
• C)smaller; larger
• D)smaller; smaller

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Definitions:

Well-Being

A comprehensive measure of overall health and happiness, encompassing physical, mental, and emotional aspects of an individual's life.

Negative Feelings

This term encompasses a range of emotions such as sadness, anger, and fear, which are often unpleasant and associated with negative thoughts and experiences.

Subjective Well-Being

Subjective Well-Being is the self-perceived feeling of happiness or satisfaction with one’s life. It is a key component of positive psychology.