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 raise tax revenue to fund important initiatives such as education programs, 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 elastic.