Chicago\'s Cook County Board Rolls Back Tax on Sweetened Drinks STARTING AUGUST

Question

Chicago's Cook County Board Rolls Back Tax on Sweetened Drinks STARTING AUGUST 2 THIS 12-PACK WILL COST YOU Cook County will make shoppers pay s massine ew e an more than 1,000 everyday beserages. Juise and sports drink, flavared water, iced tea, pap, lemenade and even diet dr will be taoxed. Every sip will eest a cent TELL YOUR COMMISSIONER TO CAN THE TAX! $1.44 MORE! 1.99 Beverage industry claims victory, as it battles similar taxes across U.S A sign sponsored by opponents of the Cook County tax on sweetened beverages is posted in the soda isle of Tischler Finer Foods in Brookfield, III. PHOTO: SARA BURNETTIASSOCIATED PRESS By Shayndi Raice Updated Oct. 10, 2017 5:11 p.m. ET 1 COMMENTS Cook County, Ill., lawmakers voted Tuesday to repeal a controversial penny-an-ounce sweetened beverage tax after less than three months in effect, delivering a big win for the da industry, which is batting simlar mamnted the tas on.swetened drinls on Aus Cook County, which includes Chicago, implemented the tax on sweetened drinks on Aug. 2 after the board president, Toni Preckwinkle, cast a tie-breaking vote in favor of the tax.

Explanation / Answer

1)   Increase in tax would help to raise the revenue only if demand is inelastic. Demand would not face substantial fall if demand happens to be inelastic. Hence, increase in tax would cause rise in revenue collection.

2)

a) if demand is elastic: It would not help to raise substantial amount of revenue but would help to reduce consumption of it. It would go long way in reducing the consumption of sin good. Whole society would be saved from adverse and harmful impacts of soda consumption.

b) If demand is inelastic: If demand is inelastic, it would assist in raising sufficient amount of revenue. Collected revenue can be spent on various social and community activities.

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.