Suppose that the elasticity of demand for soda is -08 and


1.) Suppose, that the elasticity of demand for soda is -0.8 and the elasticity of supply is 1.0. If so, would the tax fall more strongly on sellers or on buyers?

2) Setting self-interest to one side, what is your opinion regarding the effects of a soda tax on other people? Do you side with those who think the government should use taxes to nudge people to behave in a way that is good for them, or do you think the government should leave people free to decide to risk their health in order to do something that they enjoy?

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Business Management: Suppose that the elasticity of demand for soda is -08 and
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