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If a Soda Tax Is Implemented and Demand for Soda

Question 78

Multiple Choice

If a soda tax is implemented and demand for soda is price elastic, the effect on discouraging soda consumption would be ________ and ________ tax revenue would be collected than if demand were inelastic.


A) larger; more
B) larger; less
C) smaller; more
D) smaller; less

Correct Answer:

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