The effects of this tax on the market for hard liquor

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The senate of Puerto Rico recently decided to raise the taxes on soft-drinks (Coca-Cola, Seven-Up, etc.) a. Graphically illustrate the effects of this tax on the market for hard liquor. b. Would a $1 increase in the excise tax on liquor increase the equilibrium price of liquor by $1? Explain. c. How would the excise tax on hard liquor affect a beer distributor?

Reference no: EM131099371

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The effects of this tax on the market for hard liquor : The senate of Puerto Rico recently decided to raise the taxes on soft-drinks (Coca-Cola, Seven-Up, etc.) Graphically illustrate the effects of this tax on the market for hard liquor. Would a $1 increase in the excise tax on liquor increase the equili..

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