Taxing the market for alcohol at the same rate as the market for juice will likely:

Question

Quizplus · Accepted Answer

Alcohol typically has a more inelastic demand compared to juice, meaning consumers' quantity demanded for alcohol changes less in response to price changes. Therefore, taxing alcohol at the same rate as juice would likely cause less deadweight loss in the alcohol market because the quantity demanded for alcohol would decrease less than it would for juice, assuming juice has a more elastic demand.

Taxing the Market for Alcohol at the Same Rate as the Market