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Suppose the Government Decides to Fight Obesity in America by Imposing

Question 17

Multiple Choice

Suppose the government decides to fight obesity in America by imposing an excise tax based on the saturated fat content of food. The most likely effect of this tax would be to:


A) lower the profits of ice cream suppliers.
B) decrease revenue for the government.
C) decrease black market activity.
D) raise the profits of ice cream suppliers.

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