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Which non-price determinate is sometimes utilized by the government to decrease demand
for a product that is viewed as harmful to society?
А
Subsidies
B
Rationing
С
Excise taxes
D
Consumer boycotts

Answer :

Answer:

Option C

Excise taxes

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We are to determine which non-price determinate is sometimes utilized by the government to decrease demand for a product that is viewed as harmful to society

The non-price determinate which is sometimes utilized by the government to decrease demand for a product that is viewed as harmful to society is excise taxes.

  • Tax refers to the compulsory fee on the income of workers and goods or services sold in a country.

  • Income tax is levied on employees income.

  • Excise tax is levied on goods and services. The government uses tax to either encourage the consumption of a product or to discourage the consumption.

  • When excise tax are increased by the government, the price of the products increases causing a decrease in demand.

  • On the other hand, when excise tax are reduced, the price of the product decrease causing an increase in demand.

  • Remember, the law of demand which says "the higher the price, the lower the quantity demanded and the lower the price, the higher the quantity demanded".

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