For a tax on sugar or fat to reduce the consumption of fattening foods and drinks by a very large? amount, what elasticities should the demand and supply curves? have?
To substantially reduce the equilibrium quantity of sugar? (or fat), the price elasticity of demand? (for sugar or? fat) must be relatively (UNITARY ELASTIC or ELASTIC or INELASTIC) and the price elasticity of supply? (for sugar or? fat) must be relatively (UNITARY ELASTIC or ELASTIC or INELASTIC )