If big cups of sugary drinks are banned at restaurants, Microeconomics

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If big cups of sugary drinks are banned at restaurants

Question: 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?

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Microeconomics: If big cups of sugary drinks are banned at restaurants

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Microeconomics: If big cups of sugary drinks are banned at restaurants

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