On what type of products do governments impose "sin" taxes?
A)On products with elastic demand such as candy.
B)On products with inelastic demand such as alcohol.
C)On illegal products.
D)On consumer goods but not capital goods.

Question

Quizplus · Accepted Answer

Governments impose "sin" taxes on products with inelastic demand, as consumers will continue to purchase these products regardless of price increases. Examples of such products include tobacco, alcohol, and sugary drinks.

On What Type of Products Do Governments Impose "Sin" Taxes