The Price Elasticity of Demand for Soft Drinks Has Been

question 103

Multiple Choice

The price elasticity of demand for soft drinks has been estimated to be 0.55.If the government enacts a major increase in the tax on imported sugar (a major ingredient in soft drink manufacturing) ,how will that affect total expenditures on soft drinks,all other things equal?

• A)Total expenditures will remain unchanged.
• B)Total expenditures will fall.
• C)Total expenditures will rise.
• D)People will buy Pepsi instead of Coke.

Understand the basic concepts and terminology related to ethology and instinctive behaviors.

Describe the properties, functions, and examples of fixed action patterns and other instinctive responses.

Explain the role of environmental stimuli and key stimuli in triggering instinctive behaviors.

Recognize the contributions of early theorists to the understanding of instincts and their criticisms.

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