Question
Many governments implement heavy taxes on sugar-sweetened beverages (sugary drinks), as part of a comprehensive approach to decreasing overweight and obesity. Communicate through a short
Many governments implement heavy taxes on sugar-sweetened beverages (sugary drinks), as part of a comprehensive approach to decreasing overweight and obesity. Communicate through a short essay to discuss the issues. Ensure that you clearly address the following questions in your analysis. Please also reference.
1) Using the supply and demand graph(s) explain why a tax can reduce the sales of sugar-sweetened beverages.
2) Explain whether the demand for sugar-sweetened beverages is elastic or inelastic.
3) Explain if an alternative policy such as a price floor policy (or any other policy) works in reducing the sales of sugar-sweetened beverages.
4) Critically evaluate or predict the effectiveness of the sugar-sweetened beverage tax as a policy in reducing the number of people drinking sugar-sweetened beverages.
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