Refer to article at the bottom of this page. Web reference.... https://www.latimes.com/science/sciencenow/la-sci-sn-soda-tax-works-20160823-snap-story.html

1.If the price of a 12 soft drink rose from 1.80 to 1.90 with the new tax and the quantity of soft drinks consumed fell from 20 to 15.8 (in thousands), then calculate the elasticity of demand for soft drinks.Is it elastic, unitary, or inelastic?

2.According to the elasticity calculation in (1), will a sugar tax be effective in reducing the consumption of sugary drinks? Which group, high income or low income, is likely to reduce consumption more?

3.Do you think this type of tax is a good idea for London, Ontario? Would you decrease your consumption of sugary drinks in response to a 7.5% price increase?