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QUESTION

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

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?

******This assignment is due in an hour and I would really appreciate some help! Thanks so much!!

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