An example of a tax specifically designed to reduce consumption of a good is a tax on:

Question

Quizplus · Accepted Answer

A tax on cigarettes is specifically designed to reduce consumption of cigarettes as they are considered harmful to health. The tax increases the cost of cigarettes, making them less affordable and discouraging people from buying them. Taxes on other goods like chocolate, coffee, or automobiles are not specifically designed to reduce consumption but may be levied for other reasons such as raising revenue or protecting the environment.

An Example of a Tax Specifically Designed to Reduce Consumption