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Suppose that Mexico was deciding between taxing either beer or soda to reduce the consumption of those goods, but they only have resources to tax
Suppose that Mexico was deciding between taxing either beer or soda to reduce the consumption of those goods, but they only have resources to tax one good. If Mexico's goal is to get the largest health gains or reductions in consumption possible from a single tax, and the Mexican Government implemented a tax on soda, then we can assume with a high probability that the Mexican Government is assuming that soda consumption's: Group of answer choices price elasticity of demand is inelastic and is more inelastic than beer price elasticity of demand is perfectly elastic when compared to beer price elasticity of supply is perfectly inelastic relative to beer price elasticity of demand is elastic and is more elastic than beer
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