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An Increased Government Excise Tax on Liquor Will NOT Affect

Question 5

Multiple Choice

An increased government excise tax on liquor will NOT affect liquor consumption if:


A) the demand for liquor is perfectly elastic.
B) consumer tastes change.
C) the demand for liquor is perfectly inelastic.
D) liquor production becomes more expensive.
E) the supply of liquor is perfectly elastic.

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