The town you live in is considering an excise tax on soda


The town you live in is considering an excise tax on soda. It has been estimated the price elasticity of demand is 1.24. You have a friend that believes that tax will just be pushed on to consumers and it is a tax grab by the local government. Explain why your friend may be wrong on both counts using your understanding of price elasticity of demand.

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Business Economics: The town you live in is considering an excise tax on soda
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