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The Russian government wants to reduce the consumption of vodka. A one hundred rouble tax on each ...

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The Russian government wants to reduce the consumption of vodka. A one hundred rouble tax on each ...

The Russian government wants to reduce the consumption of vodka. A one hundred rouble tax on each bottle purchased may reduce the consumption of vodka under which circumstance(s)?
A) Vodka is an inferior good.
B) Vodka is a normal good.
C) Vodka is an inferior good and the taxes collected from this tax are rebated to consumers.
D) Vodka is a normal good and the taxes collected from this tax are rebated to consumers.
E) both B and C

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Microeconomics

Edition: 8^th

Author: Pindyck

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