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 suppress the market for alcoholic beverages. This can be seen as a way for the state to discourage consumption of alcohol and reduce the negative effects that excessive drinking can have on society, such as drunk driving and alcohol-related health issues. Therefore, the correct choice is A) market suppression.

When a State Decides to Double the Tax on Alcoholic