Multiple Choice
Scenario: When the price of wine is $10 per bottle, Thomas purchases 30 bottles of wine per month. Suppose the government levies a 50 percent tax on all alcoholic beverages . The burden of this tax is to be completely borne by the consumers. This reduces Thomas's consumption to 20 bottles of wine per month.
-Refer to the scenario above.After the implementation of the tax,Thomas's expenditure on wine will ________.
A) remain the same
B) increase by $50
C) decrease by $50
D) increase by $100
Correct Answer:
Verified
Correct Answer:
Verified
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