A change in the price of DVDs will change the demand for A. DVDs. B. DVD players

Question

A change in the price of DVDs will change the demand for A. DVDs. B. DVD players. C. Theater movies. D. B & C
Which of the following best explains why the government puts excise taxes on alcohol and tobacco but not on Coca-Cola, beef or butter? A. Any amount of consumption of alcohol or tobacco is worse than any amount of consumption of butter, beef or Coca-Cola. B. The government wants to take care of us by taxing things that are bad for us. C. Taxing highly inelastic goods allows the government to raise substantial revenues without causing excessive loss of sales to suppliers. Putting a tax on elastic goods with readily available substitutes would cost those suppliers a great deal of revenue without raising a sufficient amount of tax revenue to justify the loss to producers. D. Butter, beef and Coca-Cola have no bad health effects. A change in the price of DVDs will change the demand for A change in the price of DVDs will change the demand for DVDs. DVD players. Theater movies. B & C
Which of the following best explains why the government puts excise taxes on alcohol and tobacco but not on Coca-Cola, beef or butter? Which of the following best explains why the government puts excise taxes on alcohol and tobacco but not on Coca-Cola, beef or butter? Any amount of consumption of alcohol or tobacco is worse than any amount of consumption of butter, beef or Coca-Cola. The government wants to take care of us by taxing things that are bad for us. Taxing highly inelastic goods allows the government to raise substantial revenues without causing excessive loss of sales to suppliers. Putting a tax on elastic goods with readily available substitutes would cost those suppliers a great deal of revenue without raising a sufficient amount of tax revenue to justify the loss to producers. Butter, beef and Coca-Cola have no bad health effects. A. DVDs. B. DVD players. C. Theater movies. D. B & C

Explanation / Answer

                            

ANS-D. B & C FIRST, BECAUSE DVD PLAYERS ARE THE COMPLIMENTRY GOOD OF DVDS. SECOND THEATER MOVIES ARE THE SUBSTITUTE OF DVDS.

                            

B. The government wants to take care of us by taxing things that are bad for us.

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