There Have Been Proposals That a Tax Be Imposed on Sugar-Laden

question 133

Multiple Choice

There have been proposals that a tax be imposed on sugar-laden soft drinks in an attempt to reduce their consumption.Assume for simplicity that all bottled soft drinks are the same size.Suppose the initial market equilibrium is P = $2.00 and Q = 1000. FIGURE 4-4
-Refer to Figure 4-4.Suppose the government imposes a tax of $0.60 per soft-drink purchased.The after-tax price received by the seller becomes

• A)$1.80.
• B)$2.00.
• C)$2.20.
• D)$2.40.
• E)$2.60.

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Definitions:

Competitive Process

A business strategy involving continuous efforts to improve products, services, or processes to gain an advantage over rivals in the industry.

Supply Assurance

The strategic approach and practices put in place by a company to ensure consistent and reliable delivery of essential goods and services, minimizing disruption in the supply chain.

Stringent Quality

Strict and precise standards and procedures to ensure high quality of products, services, or processes.

Small Quantity

A lesser amount or volume of goods or materials, often contrasting with bulk or large-scale purchases.