There are two correct options from all the available ones in the question: alcohol has a highly inelastic demand and the government wants people to drink less.
A highly inelastic demand refers to an economic situation where demand for a product does not increase or decrease event though price rises or falls – even though the demand quantity for alcohol might fall, the total revenue will still be the same.
The second option is also correct since if the government levies a 40% tax on alcohol, they probably want the citizens to stop consuming them so much.
