If the Government Increased Taxes on Soft Drinks, the Result

question 183

Multiple Choice

If the government increased taxes on soft drinks, the result would be:

• A)an increase in equilibrium price and an increase in equilibrium quantity assuming demand is relatively inelastic.
• B)an increase in equilibrium price and a decrease in equilibrium quantity assuming demand is relatively inelastic.
• C)an increase in equilibrium price and an increase in equilibrium quantity assuming demand is perfectly inelastic.
• D)an increase in equilibrium price and a decrease in equilibrium quantity assuming demand is perfectly inelastic.
• E)no change in equilibrium price and a decrease in equilibrium quantity assuming demand is relatively inelastic.

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Definitions:

Visible Minority Members

Individuals who belong to a racial or ethnic minority that can be distinguished from the majority through visible characteristics.

Discrimination

Unfair or prejudicial treatment of people or groups based on characteristics such as race, gender, age, or sexual orientation.

Ecological Fallacy

The error of assuming that a generalized cultural or social statistic applies to all individuals within a group.

Post-colonial Theory

An intellectual discourse that analyzes, explains, and responds to the cultural legacy of colonialism and imperialism, focusing on the human consequences of the control and exploitation of colonized people and their lands.