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Title: Assume that a 2 cent per ounce percent soda tax led to a large increase in its price and only a ... Post by: lstar1993 on Feb 25, 2019 Question 1. A soda tax is more effective at reducing soda consumption when demand is price ________ and is more effective at raising tax revenue when demand is price ________.• elastic; elastic • elastic; inelastic • inelastic; elastic • inelastic; inelastic Question 2. Assume that a 2 cent per ounce percent soda tax led to a large increase in its price and only a small decrease in the quantity of soda demanded. Economic analysis would lead one to conclude that• soda should be taxed because the benefits of the tax would exceed the costs. • soda should not be taxed because the benefits are uncertain. • soda should not be taxed on ethical grounds since ethical benefits and costs can't be measured. • the benefits of taxing soda is a normative issue. Economic analysis can be used to contribute to discussion of this issue but cannot decide it. Title: Assume that a 2 cent per ounce percent soda tax led to a large increase in its price and only a ... Post by: kiyomika on Feb 25, 2019 Content hidden
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