In Recent Years, a Number of Cities Have Enacted Taxes

Multiple Choice

In recent years, a number of cities have enacted taxes on soda and other sweetened beverages. If the policy goal of these city governments is to reduce health care costs and and insurance rates for taxpayers by reducing the total amount of soda and sweetened beverages consumed, this would be most successful if the price elasticity of demand for these sweetened beverages is

A) elastic.
B) inelastic.
C) unit elastic.
D) perfectly inelastic.