Question
6) In order to discourage alcohol consumption, the government has increased the tax on beer. As a result, the price of beer has gone up
6) In order to discourage alcohol consumption, the government has increased the tax on beer. As a result, the price of beer has gone up and the quantity of beer consumed has decreased. Unfortunately, however, the quantity of wine consumed has increased. These changes are best described as:
a) A movement along the demand curve for beer, and a movement along the demand curve for wine.
b) A movement along the demand curve for beer, and a shift of the demand curve for wine.
c) A shift of the demand curve for beer, and a movement along the demand curve for wine.
d) A shift of the demand curve for beer, and a shift of the demand curve for wine
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