The elasticity of demand for alcoholic beverages is basically inelastic and when the government (State of Federal) increases taxes, the government tax revenue increases. And in the short run this was true with cigarettes as it is difficult for those who are addicted to change behavior in the short run. Taxes on alcoholic beverages and cigarettes are "sin" taxes. See what can be found about the elasticity of demand for such products as soft drinks-Coke, Pepsi- and how much does the price have to be raised to make a significant impact on consumption. Please discuss in your own words briefly.