Suppose the state of Washington decided to increase the sales tax on fast- food restaurants, e.g., McDonalds, meaning, instead of collecting the usual sales tax of 8.9% of the bill, they collect twice the amount, 17.8%,

a. Provide an estimate for the elasticity of demand for fast food restaurants, and justify your answer.

b. How will the increased tax affect the total amount consumers in this state spend on all the fast food restaurant meals they purchase, including the amounts paid in taxes?