How Successful Would a $1 Excise Tax on Each Little

question 77

Multiple Choice

How successful would a $1 excise tax on each Little Caesar's pizza be in generating revenue if Little Caesar's is the only pizza chain that is taxed?

• A) Many people like Little Caesar's, so demand is inelastic and the tax revenue generated will be large.
• B) You can get pizza at many other place, which makes the demand for Little Caesar's relatively elastic and, as a result, the tax revenue collected will be small.
• C) The supply of Little Caesar's pizza is perfectly inelastic, so this tax would not generate any revenue.
• D) The demand for Little Caesar's pizza is perfectly elastic, so the tax will not generate any revenue.
• E) The supply of Little Caesar's pizza is perfectly elastic, so this tax will generate the maximum amount of revenue.

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Definitions:

GLP-1 Receptors

Receptors for the glucagon-like peptide-1, involved in glucose regulation and targeted in treatments for type 2 diabetes and obesity.

Willpower

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Obese Biological Parents

Biological parents who are classified as obese based on body mass index (BMI), with potential genetic and environmental implications for the health and weight status of their offspring.

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