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

Question

Quizplus · Accepted Answer

A tax on gasoline is specifically designed to reduce consumption of this good. By making gasoline more expensive, people may choose to drive less or use more fuel-efficient modes of transportation. This tax is often used as a way to reduce carbon emissions and combat climate change. Taxes on automobiles or fast food may have other goals beyond reducing consumption, while a tax on dairy products may not necessarily be intended to reduce consumption.

An Example of a Tax Specifically Designed to Reduce Consumption