Read the article of "Berkeley's Soda Tax Appears To Cut Consumption Of Sugary Drinks" at the following web link: http://www.npr.org/sections/thesalt/2016/08/23/491104093/berkeleys-soda-tax-appears-to-cut-consumption-of-sugary-drinks in the context of Module 11 and Module 12.

Discuss the major factors that would make the demand for soda elastic. Discuss how the price elasticity of demand for soda might explain the lower consumption of sugary drinks. If Berkeley were hoping to collect a high tax revenue, what would help more: a price elastic demand for soda or a price inelastic demand for soda? Discuss why.