Increasing the minimum age for buying beer means that the price of beer will ________ because ________.
A) fall; beer is an inferior good
B) rise; brewers will take advantage of the situation
C) fall; there are fewer buyers in the beer market
D) fall; there are fewer sellers in the beer market
E) rise; not everyone drinks beer

Question

Quizplus · Accepted Answer

The correct answer is C because when the minimum age for buying beer is increased, it reduces the number of eligible buyers in the market. With fewer buyers, the demand for beer decreases, which can lead to a decrease in the price of beer as sellers try to attract the remaining buyers.

Increasing the Minimum Age for Buying Beer Means That the Price