If a Soda Tax Is Implemented and Demand for Soda

question 78

Multiple Choice

If a soda tax is implemented and demand for soda is price elastic, the effect on discouraging soda consumption would be ________ and ________ tax revenue would be collected than if demand were inelastic.

• A)larger; more
• B)larger; less
• C)smaller; more
• D)smaller; less

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Definitions:

Fixed Quantity Inventory

A replenishment strategy for inventory management where a constant quantity of an item is ordered whenever stock falls to a predetermined level.

Financial Aspect

The monetary considerations and implications involved in a decision, investment, or the overall financial health of an organization.

Generate Cash

The process of creating liquidity or cash flows through activities such as operations, financing, or investments.

Organizational Performance

An analysis of a company's ability to achieve its goals and objectives, measured by factors such as profitability, productivity, and market share.