After Seattle soda tax, Costco says case of Gatorade costs$26.33 by Jeffry BartashAfter Seattle soda tax, Costco says case of Gatorade costs $26.33instead of $15.99.Discount giant takes novel approach on hotly debated sugartax.Costco is telling customers in Seattle just how much a new tax onsugary drinks will cost them.Costco has adopted a novel way to show its objection to a new sodatax in Seattle: it?s telling customers just how much the tax willcost and encouraging them to buy soft drinks outside thecity.The city recently enacted a tax of 1.75 cents an ounce on sugarybeverages. The result: a case of Gatorade that used to cost $15.99now costs $26.33?a 65% markup.And a case of Dr. Pepper now costs $17.55 instead of $9.99,according to Costco. That?s a 76% surcharge.The Costco store in Seattle was also kind of enough to letcustomers know the tax did not apply in the company?s storesoutside the city.Seattle is one of a handful of cities whose liberal governmentshave raised taxes on sugary drinks to discourage people fromdrinking them. Studies have linked excessive soda consumption tohealth problems such as obesity.So far the effects of higher soda taxes have been limited. In somecities such as Berkeley, Calif., stores barely raised prices andconsumption was little changed. Keeping soda prices on the lowerside helps bring customers into stores. In other cities likePhiladelphia, prices have risen and consumption appears to havedeclined. But it?s also possible that shoppers made more sodapurchases outside the city.Soda-tax supporters in Washington state are trying to pass astatewide levy to prevent shoppers from getting around it, but itfailed to pass in 2017 and is unlikely to do so this year,either.

Part 1 (1 point) According to the Seattle city government, consumers would not respond to higher prices. Suppose that is true. On the diagram below, use the straight-line tool to illustrate what the demand curve would look like. Assume that the equilibrium price of a case of Gatorade is $20. When you draw the demand curve, extend it all the way to the top of the graph. To refer to the graphing tutorial for this question type, please click here. Price 32 30 28 26 24 22 20 18 16 14 12 10 8 6 4 0 O 5 6 09 Quantity