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If the government wanted to reduce alcohol consumption in the United States, would a state tax or federal tax be most effective? A. A state tax on alcohol consumption would be more effective because s

If the government wanted to reduce alcohol consumption in the United States, would a state tax or federal tax be most effective?

If the government wanted to reduce alcohol consumption in the United States, would a state tax or federal tax be most effective?A. A state tax on alcohol consumption would be more effective because state taxes affect more buyers. B. A state tax on alcohol consumption would be more effective because the elasticity of demand is higher at the state level than at the federal level. C. A federal tax on alcohol consumption would be more effective because suppliers cannot as easily avoid the tax simply by shipping alcohol to other states. D. A federal tax on alcohol consumption would be more effective because the elasticity of demand is higher at the federal level than at the state level.

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