Concept:Tax revenue increases most when a tax is imposed on goods whose demand does not fall sharply after a price rise.
Explanation:Goods with inelastic demand show only a small change in quantity demanded when price increases.
A tax raises the price of the good, but for inelastic goods, consumers continue buying almost the same quantity.
Therefore, the government collects more tax without a large drop in sales volume.
Alcoholic beverages generally have inelastic demand because they are habit-forming and have few close substitutes.
So, raising taxes on such goods is more effective for increasing tax revenue.
Answer:D. alcoholic beverages with inelastic demand