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Elasticity of demand for soda

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1.) Suppose, that the elasticity of demand for soda is -0.8 and the elasticity of supply is 1.0. If so, would the tax fall more strongly on sellers or on buyers?

2) Setting self-interest to one side, what is your opinion regarding the effects of a soda tax on other people? Do you side with those who think the government should use taxes to nudge people to behave in a way that is good for them, or do you think the government should leave people free to decide to risk their health in order to do something that they enjoy?

Reference no: EM132149703

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