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The sugar tax is an important policy decision by the government to discourage its citizens from consuming sugar. a) Using the principles of evaluating a

The sugar tax is an important policy decision by the government to discourage its citizens from consuming sugar.

a) Using the principles of evaluating a tax, discuss whether or not the sugar tax is good [10 marks]

b) Use relevant diagrams to explain the impact of the fuel levy on consumers and producers of sugar when sugar is relatively elastic and relatively inelastic [15 marks]

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