Economics 9708 · AS & A Level · Price elasticity of demand

Price elasticity of demand — practice question

Doctors are worried about the harmful health impacts of sugary drinks. Under what circumstances would a tax on sugary drinks be least effective in improving health?

  • Awhen the demand for sugary drinks is income elastic
  • Bwhen the demand for sugary drinks is income inelastic
  • Cwhen the demand for sugary drinks is price elastic
  • Dwhen the demand for sugary drinks is price inelastic

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