How will the price of an ounce of sugary drink change


Problem

After you have studied Economics in the News (pp. 194 - 195 ), answer the following questions.

a. If big cups of sugary drinks are banned at restaurants, theatres, and stadiums: (i) How will the price of an ounce of sugary drink change? (ii) How will consumers respond to the change in price?

b. If a tax is imposed on sugary drinks, how does: (i) The marginal utility of a sugary drink change? (ii) The consumer surplus in the market for sugary drinks change?

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Macroeconomics: How will the price of an ounce of sugary drink change
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