1. CORE QUESTION, PLEASE COMPLETE! Soda Tax1 In an attempt to reduce the consumption of sugary drinks, the City of Berkeley (California, USA) placed a tax on sugar-sweetened beverages (SSB), which raised the price of soda from $1.69 per pint to $1.86 per pint. Subsequent studies showed that average individual consumption of SSB fell from about 36 pints per daymonth to 30 pint per month}:3 (a) (6 points) Putting \"Pints of sugary drinks per month\" on the horizontal axis and \"Dollar values of other consumption" on the vertical axis, illustrate the average consumer's budget line before and after the tax is imposed. You can denote income by I. (b) (5 points) How much tax revenue is the city collecting per month from the average consumer? Illustrate this as a vertical distance on your graph. (c) (6 points) Can you tell if for the average consumer, soda and other consumption goods are rather complementary or substitutes? Hint: Think about how much money the consumer has left for other consumption in response to the soda tax. (cl) (6 points) Assume that the tax on soda has been contested by the drinks industry. The city is being pushed to remove the tax but have to find a way to raise the same tax revenue that was yielded by the tax on sugary drinks. A proposal is made to ask consumers to pay exactly the amount they paid in sugary drinks taxes as a monthly lump sum payment. Ignoring for the moment the difficulty of gathering the necessary information for implementing this proposal, how would this change the average consumer's budget constraint? (e) (7 points) Can you tell if consumers prefer the lump-sum tax or the soda tax