Day: December 27, 2021

Doctors are concerned about the negative health effects of high-caffeine drinks.

When would a tax on high-caffeine drinks be LEAST effective in improving health?

Select ONE answer:

1. when the demand for high-caffeine drinks is income elastic
2. when the demand for high-caffeine drinks is income inelastic
3. when the demand for high-caffeine drinks is price elastic
4. when the demand for high-caffeine drinks is price inelastic

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Economics KS4 and KS5 classes.

The answer is 4

1. Not correct
2. Not correct
3. Not correct
4. Correct

This work is licensed under a Creative Commons Attribution 4.0 International License.