I think the demand for junk food is elastic because the demand will respond to the price changes. I can see the sales of Starbucks drinks would extremely drop if the price went up to 10$ per drink. Based on the price elasticity of demand, the loss of a soda/junk-food tax would be relatively large because consumers of junk food are very sensitive to changes in price, since these products are not things they actually need, and they will substitute other foods for the ones that they would otherwise purchase if the price goes up. Eventually, if junk food became more expensive and healthy food became cheaper, you would even see a shift in eating habits for the nation .

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