Identify the external costs (i.e. negative externalities) of sugary drink consumption and identify alternative solutions (i.e. solutions other than a Pigouvian tax) to reducing these negative externalities. [5 marks] Note: Use diagrams where and as appropriate to really explain your answers. In undertaking your research may wish to consider questions such as: who drinks the most sugar in Australia (eg. men? women? young people? people in WA)? What drinks have the highest sugar content?

Reference Bridge, G. (2019), 'Sugary drinks tax is working - now it's time to target cakes, biscuits and snacks', The Conversation, https://theconversation.com/sugary-drinks-tax-is-working-now-its-time-to-target-cakes-biscuitsand-snacks-124325 (last accessed 14/8/20).