Question: many governments implement heavy taxes on sugarsweetened beverages sugary drinks...
Many governments implement heavy taxes on sugar-sweetened beverages (sugary drinks), as part of a comprehensive approach to decreasing overweight and obesity. You are required to write an essay to discuss this issue. Make sure that you clearly address the following questions in your analysis:
1) Using the supply and demand graph(s) explain why a tax can reduce the sales of sugar-sweetened beverages.
2)Explain whether the demand for sugar-sweetened beverages is elastic or inelastic.
3)Explain if an alternative policy such as a price floor policy (or any other policy) works in reducing the sales of sugar-sweetened beverages.
4) Critically evaluate or predict the effectiveness of the sugar-sweetened beverage tax as a policy in reducing the number of people drinking sugar-sweetened beverages.