Please show all work if needed!!

1. Elasticity of Demand: A public health issue that impacts the cost of health care individually and on a societal level is that of obesity. One of the public policy tools that policy makers have is to impose taxes to impact prices and ultimately change consumption levels of products that contribute to obesity. Sugar soda (or pop, as many say in Minnesota) is one of these products. If policy makers know the elasticity of demand for a product, they may be able to choose a tax level to raise the price enough to impact the choice to purchase soda. During a threemonth period, scanner data (from grocery stores, for example) was collected on soda purchases. The price of a case of soda (24 cans) increased from $5.99 to $7.35. As a consequence, during this three-month period the total quantity of soda purchased in the region decreased from 4,395 cases per day to 2,747 cases per day. a. Assuming all other things were equal, calculate the price elasticity of demand for soda during this period. Show your work. Start by writing down your formula and then plugging in your numbers. b. Interpret the price elasticity of demand you calculated what does it tell us? Is the demand for soda responsive or non-responsive to price changes? Explain your answer. c. Do you think imposing a tax on soda will achieve a change in behavior and ultimately improved outcomes regarding obesity and health? Use your answers to part a and b and your own intuition along with economic language to explain your reasoning