A big tax on sugary drinks in Mexico has cut consumption. Sellers passed on the entire tax in higher prices to the consumers of these sugary drinks. The largest consumers of these drinks are the poor who suffer from diabetes and obesity. Source: The New York Times, October 19, 2015 a. What is the elasticity of demand for sugary drinks? Why? b. What is the elasticity of supply of sugary drinks? Why? c. Is the tax on sugary drinks progressive or regressive? Explain. d. Who bears the tax incidence in this case? Explain. e. Based on what principle would this tax be fair?