If New York City imposed a 50 cent tax on soft-drink beverages that contain sugar or high-fructose corn syrup,it would
A)be an excise tax.
B)be an income tax.
C)reduce tax revenue.
D)cause the supply of corn to rise.

Question

Quizplus · Accepted Answer

A tax on a specific good like soft-drinks would be an example of an excise tax.

Answer:C
 It is likely that such a tax would actually increase tax revenue as people continue to purchase the beverages, but at a higher price.

If New York City Imposed a 50 Cent Tax on Soft-Drink