If the government tries to discourage people from drinking alcoholic beverages by imposing an excise tax on them but gives them an income subsidy to

If the government tries to discourage people from drinking alcoholic beverages by imposing an excise tax on them but gives them an income subsidy to keep the consumers on their original indifference curves, what will happen to consumption of alcoholic and nonalcoholic beverages? A) Consumers will only demand less alcoholic beverages if they are an inferior good to them. B) The same amount of both goods will be consumed. C) Fewer alcoholic and more nonalcoholic beverages will be consumed. D) More alcoholic and less nonalcoholic beverages will be consumed. E) It is impossible to determine what will happen to the consumption of alcoholic and more nonalcoholic beverages.





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