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Economic justification for opposing the tax

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Reference no: EM131695348

Recently, soda taxes have appeared in policy debates as a way to reduce obesity and diabetes. Provide an economic justification for the introduction of the tax; what is, instead, the economic justification for opposing the tax?

How effective would the tax be, in achieving the goal if the demand is quite inelastic? What if the demand is very elastic?

Reference no: EM131695348

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