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A Local Street Festival That Previously Sold Bracelets in Exchange

Question 66

Multiple Choice

A local street festival that previously sold bracelets in exchange for unlimited alcohol consumption is now concerned about the overconsumption of alcohol.If they switch to selling tickets per drink,will overall consumption at next year's festival decrease?


A) No, because the marginal cost per extra beer will decrease for consumers.
B) No, because the marginal cost per extra beer will increase for consumers.
C) Yes, because the marginal cost per extra beer will increase for consumers.
D) Yes, because the marginal benefit per extra beer will increase for consumers.

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