As we've learned, our choices are affected in many ways. In this Economix article about the "Beer Recession" we see the classic normal good scenario. If drinking beer at a bar is a "normal good" demand will fall as income falls, as we would predict! Also in the article, brewers are quoted saying that the hefty tax on beer has caused the dramatic drop in sales. You'll be able to answer this question more easily as the semester progresses, but how does a tax on beer change the quantity demanded? Do you expect the tax to lead to a big drop in quantity demanded, or only a little bit of a drop? What does it depend on?
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