When a State decides to double the tax on alcoholic beverages and consequently,increases their market price,the State is aiming at:
A) market suppression.
B) profit maximization.
C) cost recovery.
D) market domination.

Question

Quizplus · Accepted Answer

By doubling the tax on alcoholic beverages and increasing their market price, the State is attempting to make the product less affordable and therefore reduce its consumption. This is a typical approach to market suppression, which aims to decrease the demand for certain goods or services by making them more expensive. The State may have various reasons for wanting to suppress the market for alcohol, such as concerns about public health or social order. Profit maximization, cost recovery, and market domination are not relevant goals in this scenario.

When a State Decides to Double the Tax on Alcoholic