The example that states can lose sales tax will be considered as a common good.
Common goods refer to goods that are used by everyone, provide benefits and can not be neglected. The three key elements of common goods can be considered as individual growth, social growth and development as a group.
If the government loses sales tax it means they are not supporting selling cigarettes that cause cancer, which shows social growth.
Therefore, option C. states might lose tax on sales is an example of the common good.
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